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Saudi Electricity Company, which is controlled by the government, recently held talks with a group of international banks on its plan to issue dollar-denominated bonds, according to Reuters. [1] The Saudi Electricity Company reported in January that it had lifted the syndicated loan for general purposes and supported its capital spending program.
The "bridge loan" is a short-term loan commonly used to bridge the gap between short-term and long-term loans and extends over a 12-month period.
Saudi Electricity received the loan for one year Citibank, MUFG, Premier Bank of Abu Dhabi, HSBC, Mizuho Bank, Natixis Bank, Sumitomo Mitsui Bank and Standard Chartered Bank
A source directly involved in the talks said the group of banks would participate "almost" in the planned issuance of bonds. May be postponed until September if market conditions do not improve.
A Major US $ 500 Million Bond to the Commercial Bank of Qatar in May
Since then, potential bond issuers in the region have commented on their plans because of the volatility of the markets and the price that they have. they will have to pay to attract the demand. The Saudi Electricity Company can replace the total amount of the bridge loan, although the final size will also depend on the pricing conditions.
As part of the broader reforms of the Saudi energy sector, the Kingdom plans to restructure the company by dividing it into four separate units.
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