It is understood that commitments totalling almost $500 million were received, necessitating an extensive scaling back. 'There will be no chance of a general syndication now,' says a banker close to the transaction.

The banks joining the transaction at the sub-underwriting stage are Arab Petroleum Investments Corporation (Apicorp), Arab Bank, Credit Agricole Indosuez, Gulf International Bank, Riyad Bank, Saudi British Bank, Saudi Hollandi Bankand Standard Chartered Bank.

The margin on the facility starts at 130 basis points (bp) over Libor pre-completion, drops to 125 bp until the end of year six, then rises to 140 bp until the end of year 12 and to 175 bp until completion.

It is understood that fees of 110 bp were offered to those bidding for a $75 million sub-underwriting commitment, and 90 bp for those interested in $40 million take-and-hold tickets (MEED 2:1:04).

The facility has been lead arranged by Arab National Bank, Banque Saudi Fransiand Saudi American Bank. It is understood that they were originally aiming to reach a final hold of $100 million each, but the heavy oversubscription may lead to some scaling back.