Business | Banking
Gulf firms may raise $30b for projects
- Bloomberg
- Published: 00:00 March 12, 2010
Manama: Gulf companies may raise about $30 billion this year to fin-ance their refinery, power and water projects, Christophe Mariot, BNP Paribas SA's head of structured finance for the Middle East, said at a conference in Bahrain yesterday.
GDF Suez SA and Saudi Electricity Co plan to raise about $1.8 billion (Dh6.61 billion) through syndicated bank loans and export-credit facilities to build a power plant in Saudi Arabia, two bankers with knowledge of the transaction said on March 8. Saudi Arabian Oil Co, the world's biggest crude producer, and Total SA hired banks to sell Islamic bonds to fund construction of a $12 billion oil refinery, two bankers with knowledge of the transaction said on February 21
Power demand
Saudi Electricity, the largest utility provider in the Middle East, plans to invest $28 billion in the next three years to meet an annual 8 per cent increase in demand in the kingdom, spurred by a growing population and financed through a $400 billion, five-year government-spending programme.
"We will also see the re-emergence of the syndicated loans as a complementary fit to the bond market," Mark Waters, head of BNP Paribas debt capital markets for Middle East, said at the same conference. "You would also see longer maturity bonds. You would see some government-related entities to issue seven, 10, 15 years bonds."
Share this article
More from Banking
More from Business
Popular in Business
-
General
Richest in the world
The UAE is home to some of the wealthiest expats in the world
Business Editor's choice
-
Obama to expand business tax relief
Proposes to boost federal spending on the nation's transportation system
-
Dnata doubles its luxury portfolio
Adds Thailand's leading hotel chain Centara on heels of resorts in Italy and Mauritius
-
Welcome to subsidy paradise
Database shows who gets what in EU agricultural subsidies every year
