Rawabi Energy closes $1.9bn syndicated deal
Scale of transaction demonstrates continuing widespread belief in solid growth of Saudi market
Rawabi Energy and its subsidiaries have announced the successful conclusion of one of the largest private sector syndicated financial deals in the Kingdom of Saudi Arabia. It has successfully closed with the sum of SAR7.175bn ($1.913bn) as a syndicated, multi-currency senior secured package using both SAR and USD facilities.
Led by strong market demand, the landmark transaction was oversubscribed by 1.33x, reinforcing confidence in the kingdom’s economy and its widely-heralded, robust prospects for growth.
Rawabi Energy’s announcement underlines how the transaction also highlights the investor trust in the company and the Rawabi Holding Group, underpinned by their strong fundamentals and exceptional expertise in the energy sector and other sectors. Several national and regional banks arranged, structured, and concluded the market clearing structure and syndication strategy for the organisation. The transaction will accelerate the company’s growth plans, underpinned by a full capital structure take-out and refinancing of existing indebtedness.
HSBC Saudi Arabia acted as the sole structuring bank, joint global coordinator, global agent, facility agent and investment agent. Gulf International Bank and Gulf International Bank – Saudi Arabia (together GIB) acted as joint global coordinator, mandated lead arranger, facility agent, and security agent. The mandated lead arrangers included Saudi Awwal Bank (SAB), Saudi National Bank (SNB), Alinma Bank, Riyad Bank, Bank Al Jazira, and Al Rajhi Banking and Investment Corporation. The lending group also included First Abu Dhabi Bank (FAB), acting as lead arranger.
Abdulaziz Ali AlTurki, Rawabi Holding Group Chairman and the Chairman of Rawabi Energy, said: “We are delighted to receive this level of support on our debut dual-currency syndicated transaction from the local and regional banking community. This transaction demonstrates the strong partnership we have with our financiers, who have supported our growth over the years and played a key role in positioning Rawabi Energy as a national champion, aligning with our wise leadership’s limitless ambitions.”
