Saudi Arabian telecoms firm Etihad-Etisalat (Mobily) closed a SR10bn ($2.7bn) loan deal on 12 February as local corporates take advantage of the low interest rates being offered by lenders in the country.

A SR4.5bn ($1.2bn) loan for Power & Water Utility Company for Jubail & Yanbu (Marafiq) is also set to be closed on 14 February, according to bankers in Saudi Arabia.

The completion of the two deals, launched to the bank market last year, is the latest sign of the liquidity in the Saudi banks. The Mobily deal was arranged by the local Samba and is financed by Samba along with Banque Saudi Fransi, National Commercial Bank, Riyad Bank, SABB, Al-Rajhi and Saudi Hollandi.

The completion of the two deals, launched last year, is the latest evidence of liquidity in Saudi banks

The Marafiq loan was arranged by the UK’s HSBC and is being financed by National Commercial Bank, Samba, Banque Saudi Fransi, Arab National Bank, Saudi Hollandi and Al-Rajhi Bank. At the beginning of the loan’s 15-year tenor, Marafiq will pay just 70 basis points above the Saudi interbank offered rate (Sibor). Mobily will pay 65 basis points above Sibor for two five-year tranches of its loan and 70 basis points above Sibor for two seven-year tranches.