The Debt Management Office (DMO) of the Ministry of Finance, can report today that all banks participating in the loan confirmed their acceptance of the terms. This represents the conclusion of another successful stage in the amendment, repricing and extension of the Kingdom’s 2016’s USD 10 billion international syndicated loan facility. RfPs were sent to the 14 relationship banks that participated in the 2016 transaction in addition to a group of financial institutions who have sought to join the Kingdom’s core bank group.
There has been an exceptional response to this process from the global bank market, from both existing holders and new banks. Given the exceptional response to this process, the total facility size will be upscaled by USD 6 billion to USD 16 billion.
The Ministry of Finance, Kingdom of Saudi Arabia, would like to announce that it has mandated a number of international and local investment banks to organize a series of fixed income investor meetings commencing on Monday, 05/01/1439H (corresponding to 25th September 2017). The Ministry of Finance has also mandated such investment banks to manage and arrange an offering of notes under the GMTN Programme established by the Kingdom of Saudi Arabia on 10 October 2016 and updated on Friday 22 September 2017.
In response to the strong global demand for Shariah compliant issuances from the Kingdom, a significant Islamic tranche will be introduced to the transaction, demonstrating and supporting the Kingdom’s Vision 2030 goal of becoming the leading Islamic finance hub.Subject to market conditions, a Rule 144A/Reg S Senior Unsecured USD benchmark offering will follow such meetings.
The consistent and prudent steps taken by the Kingdom over the past two years to realize the Vision 2030 via the Fiscal Balance Program and other economic reforms have been reflected in the scale and nature of the global market response to this benchmark transaction. Pricing for the revised facility, will be set at a margin representing a 30% reduction from levels set in 2016. _____________The DMO is currently finalizing the documentation process for the transaction and intends to close the financing by mid-March.
This announcement is not being made in and copies of it may not be distributed or sent into the United States, Canada, Australia or Japan.Commenting on the successful outcomes of the transaction, H.E. Mohammed Al Jadaan, Minister of Finance said “The DMO successfully led and coordinated with our partner financial institutions on this strategic financing. We are pleased that the transaction, with its increased size and enhanced terms, not only reflects the global banking community’s recognition of the strengthening of the Saudi economy, but is also a further step in the realization of the DMO and Ministry of Finance’s ambitions to achieve a prominent position for the Kingdom in the international financial markets. This also illustrates the Ministry of Finance’s role as part of Vision 2030’s ambition to create a global investment powerhouse.”
This press release does not constitute an offer, in the Kingdom of Saudi Arabia or any other countries, of the securities mentioned above. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Kingdom of Saudi Arabia does not intend to register any of the securities in the United States or to conduct a public offering of the securities in the United States. The securities will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act and outside the United States pursuant to Regulation S under the Securities Act. This announcement is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
This communication does not constitute an offer of the Securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the Securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.