Saudi Arabia asks banks for proposals to refinance $10bn in debt market reform push

King Abdullah Financial District in Riyadh. Saudi Arabia is seeking to develop its debt markets as part of wide-ranging reforms. (Reuters)
Updated 22 January 2018
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Saudi Arabia asks banks for proposals to refinance $10bn in debt market reform push

DUBAI: 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 US 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.
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.


Deals worth more than $50bn signed at KSA Future Investment Initiative

Updated 9 min 39 sec ago
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Deals worth more than $50bn signed at KSA Future Investment Initiative

DUBAI: More than 25 deals worth more than $50 billion have been signed at Future Investment Initiative in Riyadh, including 12 “mega deals.”

One of the deals signed was for the second phase of Haramain high-speed railway. Public transport projects, including the development of Saudi Land Bridge project, are also among the raft of deals signed.

 

An MoU between Saudi Aramco and Halliburton was also signed, one of the 25 agreements sealed in during the opening day of the conference in Riyadh.

 

 

More to follow.