Saudi Arabia working with banks to refinance $10 bln loan

07/02/2018 Argaam

 

Saudi Arabia is working with three global lenders – HSBC, JPMorgan, and Mitsubishi UFJ Financial Group – to refinance its existing $10 billion international syndicated loan, Reuters reported, citing banking sources.

 

The refinancing, which will involve more European, American and Japanese banks, is expected to be completed by mid-February.

 

The total amount to be refinanced has not been finalized and depends on how much Saudi Arabia raises from other fund-raising exercises, such as international bonds and local currency sukuk issuances.

 

A spokesperson for Saudi Arabia’s Debt Management Office said it is coordinating the transaction directly with all financial institutions.

 

In January, Fahad Al-Saif, president of the DMO, said the Kingdom had invited banks to submit proposals to refinance its $10 billion international syndicated loan.

 

The deal includes repricing of the existing debt facility, extension of maturity to 2023 from 2021, and adding a new tranche to the loan using Murabaha system.

 

Separately, the Kingdom is planning to sell a new US dollar-denominated bond in the next few weeks, Reuters reported.

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.