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
More Construction & Real Estate Stories
- Work to start on Bahrain beach project
- Damac launches luxury apartments at Expo site
- Kuwaitis top GCC property buyers in Oman
- Rubber World to showcase at Big 5 Saudi
- Tool to help create effective property listings
- 'Smart' move by Dubai Design District
- Drake unit wins $13m contract in India
- Solar-powered cleaning boats launched in Sharjah
- $27m Expo Hotel Sharjah deal signed
- Arabtec unit wins $282m Emaar contract
- Abu Dhabi to host pool & spa expo
- ADCM unit secures $213m bridging loan
- Cluttons Dubai launches new luxury apartments
- Dubai developer Damac profits triple to $641m
- Dubai to start work on $544m water canal
- Dubai property market can absorb 25,000 units
- Jones Lang LaSalle renamed 'JLL'
- Aldar raises synergy estimate from Sorouh merger
- UAE industrial property sector keeps up growth
- Dubai residential property prices up 26pc
- Majid Al Futtaim to build new mall in Dubai IMPZ
- 300 firms to take part in Dubai property forum
- Naseej inks deal to develop Bahrain projects
- Dadabhai unveils new residential project
- Flowcrete completes Dubai Mall project
- Global asphalt demand hits new high
- $1.3bn infrastructure investment firm set up in Saudi
- Manara sees big project villa success
- Global giants eye RAK utility projects
- Cayan partners with international artist Zsuzsanna