ICBC chosen as bookrunner for biggest financing deal in Europe, Middle East and Africa as Saudi Arabia aims to raise US$11 billion from syndicated loan
- The kingdom’s Ministry of Finance has appointed the bank as coordinator and bookrunner for the long-term senior, unsecured loan, say people familiar
- Industrial and Commercial Bank of China’s role highlights the increasing use of Chinese lenders in the Middle East
While part of that will be funded by oil revenue, the government also needs to attract foreign investment and borrow. Many key bodies investing in Vision 2030 projects, including the Public Investment Fund and its subsidiaries developing the new city of Neom, have already borrowed tens of billions of dollars.
A representative for the Ministry of Finance did not immediately respond to requests for comment outside of office hours on Friday. A representative for ICBC was not immediately available to comment.
ICBC has this year jumped seven spots to 11th in a table of bookrunners for Middle East loans, while BOC climbed four spots to 13th place, the data shows.
Saudi Arabia is in talks to raise the funds after its budget deficit widened in the second quarter as the government raised spending on social benefits and projects meant to diversify its economy. A series of oil production cuts and lower prices may lead the kingdom’s economy to contract this year. In July, the International Monetary Fund gave the kingdom the steepest growth downgrade among major economies for this year.