Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Saudi Arabia asks banks for proposals to refinance $10 billion loan, raise more debt

Published 01/21/2018, 03:43 PM
Updated 01/21/2018, 03:43 PM
© Reuters. FILE PHOTO:A vehicle drives past the King Abdullah Financial District in Riyadh

© Reuters. FILE PHOTO:A vehicle drives past the King Abdullah Financial District in Riyadh

DUBAI (Reuters) - Saudi Arabia has asked banks for proposals to refinance its $10 billion international syndicated loan and to help the sovereign raise funds through other means, the country's debt management office said on Sunday.

In addition to the request for proposals (RFP) on the loan refinancing, the government has issued RFPs covering further U.S. dollar debt capital market issuance and financing supported by other countries' export credit agencies, the office said.

The refinancing of the loan, which was raised in 2016, will include a repricing of the facility and the extension of its maturity to 2023 from 2021. An Islamic finance tranche using a murabaha structure will be added to the loan.

The plans are a step toward Saudi Arabia's ambition of establishing a prominent position in international debt markets as part of its economic reforms, said Fahad al-Saif, president of the debt management office.

"We look forward to a satisfactory conclusion of the process over the coming months,” he said.

The Saudi government started issuing debt in the international markets through loans and bonds two years ago in order to refill state coffers hit by a slump in oil prices.

© Reuters. FILE PHOTO:A vehicle drives past the King Abdullah Financial District in Riyadh

Its $10 billion syndicated loan in early 2016 was followed later that year by a $17.5 billion debut bond issue, the largest bond ever sold by an emerging market issuer.

Latest comments

Why not sell shares of Armco of they're so hard up for cash? Wait, they're trying that with no success? Hmmm, I guess that's what happens when you run out of oil. Long camels.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.