Lead arrangers climb onto Sadaf refinancing

06 December 2002

A lead arranging group comprising seven local and international banks has been mandated for a $650 million refinancing for Saudi Petrochemical Company (Sadaf).

The underwriting has not been equally allocated. HSBC, with its local affiliate Saudi British Bank, has taken a $125 million ticket, as has Al-Bank Al-Saudi Al-Fransi. Four other banks, Gulf International Bank, National Commercial Bank, Saudi American Bankand Saudi Hollandi Bank, have each taken $100 million tickets.

When the transaction is launched to general syndication, HSBC and Gulf International Bankwill act as joint bookrunners. No date has yet been set for the launch.

The seven-year facility has a margin of 75 basis points over Libor. It will be used partly to refinance two existing loans secured in 1995 and 1999, while $250 million will be used for capital expenditure requirements (MEED 22:11:02). The financial adviser to Sadaf is Apicorp Taylor-DeJongh Advisory Services.

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