Saudi Arabia's $16 billion syndicated loan cuts funding costs

Saudi Arabia's $16 billion syndicated loan cuts funding costs:

"Saudi Arabia’s planned $16 billion syndicated loan, one of the largest ever in emerging markets, will cut the kingdom’s cost of funding by paying banks much less than on previous borrowings.

The ministry of finance said on Twitter that it would offer banks a margin of 75 basis points over the London Interbank Offered Rate (Libor) for the loan, which Saudi Arabia’s Debt Management Office plans to close by mid-March.

Offers from international banks for the loan, which will refinance, extend and increase an existing $10 billion facility raised in 2016 and due in 2021, exceeded $20 billion, it said."



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