Saudi Aramco and Malaysia’s state-owned oil firm are close to raising an $8bn loan to partly finance the construction of a planned refinery and a petrochemical complex in the country, according to a Bloomberg report.

Aramco and Petroliam Nasional (Petronas) could sign the loan agreement as early as next month, Bloomberg quoted one of its sources as saying.

BNP Paribas and HSBC Holdings and Bank of Tokyo-Mitsubishi UFJ are among the lenders that have agreed to provide financing, it is understood.

The complex is part of a $27bn project known as Refinery and Petrochemicals Integrated Development, or RAPID, in Malaysia’s southern state of Johor that’s due to come on stream in 2019.

Aramco agreed to invest $7bn for half of the oil refinery and petrochemical plant last February in a bid to defend its market share in Malaysia and Asia as a whole.