Keppel Infrastructure Fund Management (KIFM), the trustee-manager of Keppel Infrastructure Trust (KIT), has entered into a subscription agreement, a limited partnership agreement and related documentation to invest in Aramco Gas Pipelines Company, an entity with cash flows derived from the gas pipelines network of Saudi Arabian Oil Company (Aramco).
KIT intends to invest $250 million, alongside investors including BlackRock Real Assets and Hassana Investment Company, for an indirect minority and non-controlling stake into a special purpose vehicle (SPV), which has entered into a conditional share sale and purchase agreement with Aramco.
KIFM intends to fund the acquisition with internal sources of funds and existing debt facilities, including a two-year bridge facility taken up by KIT.
The SPV will acquire a 49 percent stake in Aramco Gas Pipelines Company, which will lease usage rights in Aramco’s gas pipeline network in Saudi Arabia for a 20-year period.