Economy News _ Baghdad
Saudi Arabia has closed a $ 16 billion syndicated loan to refinance a $ 10 billion credit facility in 2016, banking sources said on Sunday.
The deal, which was closed on March 19, includes a $ 8.35 billion loan and $ 7.65 billion Murabaha financing.
HSBC, JPMorgan, Mitsubishi UFJ, Bank of China, Citibank, Credit Agricole, Mizuho Bank, Industrial and Commercial Bank of China, Standard Chartered, BNP Paribas, Goldman Sachs, Societe Generale and Bank of America Merrill Lynch Deutsche Bank and Morgan Stanley, according to Thomson Reuters.
Besides the addition of an Islamic financing segment, the new loan includes extending the maturity to 2023 from 2021 and re-pricing.
The deal is 30 percent lower than the original loan, which was paying 120 basis points above London's LIBOR rate, making the new deal 84 basis points above LIBOR.
The Saudi government began borrowing from international markets through loans and bonds two years ago to compensate for the loss of its coffers caused by the collapse of oil prices.
Saudi Arabia's Vision 2030 includes reducing dependence on oil, diversifying resources and developing public service sectors such as health, education, infrastructure, leisure and tourism.
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