Dubai: Saudi Arabian construction company Saudi Oger, said yesterday it has mandated banks to arrange its first loan to be run by non-Saudi institutions, with syndication expected to begin shortly.
Deutsche Bank, China Development Bank and Emirates NBD are to act as initial mandated lead arrangers and bookrunners for the deal, according to a company statement.
The transaction is split between two facilities — a $800 million (Dh2.9 billion) senior secured term loan and a 3.97 billion Saudi riyal advance payment guarantee (APG) — which will partially fund the King Abdullah Project two scheme which the company is completing for the Saudi Ministry of Interior.
A regional banking source said the term loan carried a five-year tenor, with the APG lasting for three years. A Saudi Oger spokesman did not immediately respond.
French lender Natixis has joined in a mandated lead arranger role for both tranches, while Industrial and Commercial Bank of China has joined for the term loan only.
Abu Dhabi's Al Hilal Bank and Barclays Capital have been appointed lead arrangers for the APG only.
Deutsche Bank has been looking to arrange a loan for Saudi Oger since mid-March and banking sources said last month a senior group of banks was close to being secured for a multi-currency deal worth around $2 billion. The company last tapped the loan market in August 2010, when it completed a $250 million loan via Credit Agricole CIB, RLPC data showed. That deal matures in December 2014.
- $800m: secured term loan part of Oger deal
- 3.97b: Saudi riyal advance payment in deal
- $2b: Deutsche Bank deal to be secured for Oger
