Kingdom Holding plans up to $500m loan
Dubai, October 7, 2012
Saudi Arabia's Kingdom Holding , the investment vehicle of Prince Alwaleed bin Talal, is planning to raise up to $500 million from a syndicated loan, with the proceeds largely to refinance existing debt, three banking sources said.
Kingdom, which has minority stakes in some of the world's top companies including Citigroup Inc, had initially planned a bond issue, but decided to go for the loan instead, one of the sources familiar with the matter said.
In June, sources told Reuters the investment firm had hired Deutsche Bank and Banque Saudi Fransi for its maiden debt issue in the local bond market.
"The bond issue plan was definitely on and Kingdom had sought out a rating to proceed with it but the plan was shelved later and they have now decided to go for the loan," a banking source familiar with the matter said, declining to elaborate.
"Most of it will be used to refinance existing debt."
The loan facility was expected to have a tenure of three years, a second banking source said.
Kingdom Holding was not immediately available for comment. An email sent to the investment firm seeking comment was unanswered. The sources did not want to be named as the matter has not been made public.
The investment firm has hired a number of local and international banks including, J.P. Morgan Chase Inc, Deutsche Bank, Citigroup Inc, HSBC Holdings, Standard Chartered, Royal Bank of Scotland, Samba Financial Group, Banque Saudi Fransi and Saudi British Bank for the loan facility, the sources said.
Historically-low interest rates and plentiful liquidity in the local bank market have assisted Middle Eastern companies to refinance obligations, either in the loan or bond markets, allowing them to lock in competitive financing rates.
Kingdom raised $800 million from a syndicated loan in 2008, according to Reuters data. The investment firm is 95-percent owned by Prince Alwaleed, a nephew of Saudi Arabia's king and a billionaire thought to be worth about $20 billion.
Through his investment vehicle, Alwaleed also owns stakes in Rupert Murdoch's News Corp and microblogging site Twitter.
Kingdom said in July its second-quarter net profit rose 9.4 percent as the value of its investments increased during the period. – Reuters
More Finance & Capital Market Stories
- Insurance House posts second year of profit
- ETF global assets hit record $2.44 trillion
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook
- GCC urged to set up onshore financial centres
- Consolidation push paying off for Bahrain banks
- Mubadala to focus more on US, Europe
- Six banks join plan for shared customer data register
- UAE economy grows 4pc in 2013
- Egypt foreign reserves up to $17.3bn
- StanChart opens second branch in Iraq
- Oil below $90 to hit GCC economies
- Payfort offers zero deposit scheme to SMEs