Sunday 24 June 2018

Saudi Oger inks $1.85bn loan deal

Riyadh, September 11, 2011

Saudi Oger, a top construction group, said it has reached a deal with a group of leading banks to secure a landmark $800 million senior term loan facility and a SR3.97 billion ($1.05 billion) advance payment guarantee facility to fund the King Abdullah Project 2.

The project facilities were entered into by Deutsche Bank (acting through its London and Riyadh branches), China Development Bank and Emirates Bank NBD, each acting as an Initial Mandated Lead Arranger and Book runner for both the Term Loan Facility and the APG Facility.

Also joining the Project Facilities are Industrial and Commercial Bank of China acting as Mandated Lead Arranger for the Term Loan Facility and Natixis Dubai Branch acting as mandated lead arranger for the project facilities.

Al Hilal Bank and Barclays Capital have also acceded to the transaction as Lead Arrangers for the APG Facility.

A general syndication phase targeting existing and new relationship banks will launch shortly, said Saudi Oger in a statement.

The project facilities entered into in May 2011, were raised to partially finance the King Abdullah Project 2 (KAP2) which was commissioned by the Ministry of Interior of the Kingdom of Saudi Arabia, the statement added.

The project facilities are the first to be led exclusively by non-Saudi domiciled institutions as part of an ongoing strategy by Saudi Oger to diversify and broaden its financing base for its core infrastructure construction and contracting business, said a top offical.

Mohammed Hariri, senior vice president of Saudi Oger said, 'We are extremely pleased with the successful completion of the formation of the senior arranging group of banks.'

'The group of arrangers represents institutions from Europe, the Middle East and China which are all regions of strategic importance to Saudi Oger.'

'We are very delighted and particularly gratified to the large participation of China Development Bank and Industrial and Commercial Bank of China who once again confirm their undoubted support to Saudi Oger,' Hariri observed.

'The KAP 2 is of highest priority for Saudi Oger as part of our long history of executing  infrastructure plans of the Kingdom. We look forward to other institutions joining us in the transaction during the syndication process,' he added-TradeArabia News Service

Tags: Funding | Saudi Oger | secure | loan facility | major project |

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