Friday 24 November 2023

#SaudiArabia: Syndicated Loan Raises $11 Billion to Help Fund Budget Deficit - Bloomberg

Saudi Arabia: Syndicated Loan Raises $11 Billion to Help Fund Budget Deficit - Bloomberg

Saudi Arabia raised $11 billion through a syndicated loan, the biggest globally by a government this year, as it looks to finance a budget deficit amid weaker oil revenues.

The 10-year loan was funded by roughly 18 banks, including a handful of branches affiliated with the same parent lender, according to people familiar with the matter. Chinese banks committed roughly $5 billion, the people said.

A spokesperson for the Saudi Ministry of Finance didn’t respond to requests to comment.

Saudi Arabia revised its financial outlook, forecasting deficits from 2023 until at least 2026, according to a medium term budget projection published in October. The deficit comes amid weaker-than-expected oil prices, lower production from May and rising government spending as the kingdom pours hundreds of billions of dollars into a diversification drive championed by Crown Prince Mohammed bin Salman and dubbed Vision 2030.

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