State petroleum firm Saudi Aramco is talking with international banks about borrowing up to $50bn, which would be used to fund the acquisition of a “strategic interest” in state-led petrochemicals giant Sabic.

Aramco has met with bankers over the past several weeks to present proposals for financing the purchase of a major stake in Sabic, which has a stock market value of about $100bn, according to a 1 October Reuters report.

Riyadh’s Public Investment Fund (PIF) holds...