Saudi Oger reached a deal with a group of leading banks to secure a landmark US$800mn senior term loan facility and a US$1.05 billion advance payment guarantee facility to fund the King Abdullah Project 2.
The project facilities were entered into by Deutsche Bank, 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.
A general syndication phase targeting existing and new relationship banks will launch shortly, Saudi Oger said 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 Saudi Arabia.
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 said.