Middle East Loans

The loan market is weighing up the consequences of the disappearance and plausible murder of Jamal Khashoggi, a prominent Saudi journalist who had criticised the regime.

Despite a flurry of announcements by business leaders that they were abandoning their visits to a Saudi conference amid claims of the torture and murder of a journalist, IMF boss Christine Lagarde said she would go to Riyadh to “speak my mind”.

Investors’ eyes are on the Middle East this week as a slew of borrowers bring Sukuk trades to market, but while hopes are high for successful deals, a Turkish central bank rate decision looms large in investors’ minds.

Some banks in the Middle East are turning their backs on the syndicated lending model as a way to try to preserve larger allocations in deals, according to a number of bankers from the region. Mike Turner reports.

Telecom Egypt’s $500m five year loan syndication is expected to take at least another couple of weeks after potential lenders met in Dubai on Tuesday.

Loans bankers in the Middle East are turning their backs on the syndicated lending model as a way to try and preserve larger allocations in transactions, according to two bankers from the region.

Kuwait’s Zain Group has signed a $700m five year revolving credit facility, with all lenders scaled back by the telecoms company following an oversubscription.

Emerging market borrowers and investors are returning from the summer break slowly but surely this week, but caution is still the prevailing tone.

Public Investment Fund, the sovereign wealth fund that invests for the government of Saudi Arabia, is seeking global bank lenders for a debut loan.

Kuwait Foreign Petroleum Exploration Co (Kufpec) has mandated banks for a five year loan of around $1bn, according to two sources.

Aluminium Bahrain (Alba) is working to get the final part of its second export credit agency-backed loan by the end of this quarter. The deal will wrap up the multibillion dollar-equivalent financing for one of the largest brownfield projects in the Middle East.

Maaden Bauxite and Alumina Co has amended and refinanced $2.1bn-equivalent of long term debt. The subsidiary of Saudi Arabian Mining Co has locked in better terms on its debt than the loans being replaced.