Saudi Aramco and France’s Total are due to complete the financing for their $12.8bn Jubail refinery project on 22 June, according to bankers close to the deal.

Banks in Saudi Arabia have been informed of their local currency allocations, which are being made in addition to the $790m dollar denominated loans they are contributing to the deal. The riyal funding to the project is understood to make up less than $2bn (SR7.5bn) of the total.

The sponsors will complete the bank financing and export credit agency funding ahead of a local sukuk issue, the launch of which sources working on the deal say is planned for later in the year. The sukuk is expected to be around $1bn in size.

The final price of the scheme has fallen to $12.8bn, according to the total size of the financing for the project. The original information sent out to banks in June 2009 when the project financing was launched put the total cost at $13.7bn.

“The final size of the project is around $1bn cheaper than originally estimated, so Aramco has got a great price,” one banker says.