JEDDAH, 23 June 2005 — Banque Saudi Fransi signed on Tuesday a five-year joint loan worth $650 million managed by a consortium of regional and international banks.
The signing ceremony was held in London in the presence of BSF Chairman Ibrahim Al-Taok. This is the largest loan of its kind by a Saudi bank until now. The operation for the loan was organized by a group of five banks that include Calyon of France, Deutch Bank, City Bank, Gulf International Bank, and Sumitomo and Mitsui Banking Corporation.
BSF initially applied for a $500 million loan but due to the strong response from the banks, it closed for $650 million.
Managing Director of the BSF Jean Marion said the reason for the application’s success is the foundation upon which the bank works and its high capabilities in the Saudi market and its relationship that connects it to one of the world’s largest banks, referring to Calyon Bank. “The success of the operation affirms the financial strength of the bank and the high regard it enjoys in the international financial institutions in the Middle East, Europe and Asia,” he added. He did not clarify on who will be benefiting from the loan or how it will be used.
BSF net income as of March 31, 2005 reached SR430 million, up 30% compared to March 2004. Despite low levels of interest rates and yields, total operating income improved by 27% year-on-year, thanks to 38% increase of the loans and advances portfolio and 72% growth in fees from banking services. Also year-on-year, customer deposits rose by 7%, contributing directly to the 13% increase in the Balance Sheet, now standing at SR61.6 billion.
