The Saudi government has obtained a syndicated loan amounting to $11 billion, equivalent to SAR 41.3 billion, marking the largest government loan globally this year, as reported by sources to Bloomberg.
The loan, with a term of 10 years, was financed by around 18 banks, with Chinese banks committing about $5 billion.
The loan’s interest margin is set at 100 basis points above the Secured Overnight Financing Rate (SOFR), a benchmark for overnight secured lending rates.
As of the end of the first quarter of 2023, Saudi Arabia’s total debt stood at nearly SAR 994 billion, or around $265 billion.
In a previous note, economists at Goldman Sachs highlighted that the Kingdom is aiming to maintain a balance of external and domestic financing.
Additionally, Saudi Arabia is exploring options in the syndicated loan market to fund certain projects.
This move is a significant step in the country’s financial strategy, reflecting its active engagement in global financial markets.
Saudi Minister of Investment, Khaled Al-Falih, recently revealed a substantial portfolio of investment opportunities worth around SAR 100 billion in the Northern Borders Region.
Noting the presence of approximately 100 new investment prospects valued at SAR 20 billion, Al-Falih highlighted the additional existing opportunities valued at SAR 80 billion.
The Northern Borders Region holds a significant share of Saudi Arabia’s mineral wealth, constituting 25% with an estimated total value of SAR 1.2 trillion, as stated by Deputy Minister of Industry and Mineral Resources for Mining Affairs, Khaled Al-Mudaifer.
Additionally, the region boasts approximately 7% of the world’s phosphate reserve, with ongoing investments totaling around SAR 85 billion in two stages.
Emphasizing the potential for renewable energy production, especially in response to global demand for green products with low carbon intensity, Al-Falih highlighted the region’s capacity to export electricity to neighboring countries like Iraq at a highly competitive cost.
