The government is in talks with
banks to raise about $10 billion through a syndicated loan, two people
familiar with the matter said last month. While Al-Sheikh declined to
confirm the details and the potential size of the deal, he said it will
be followed by the kingdom’s first international dollar bond as early as
September.
“We’re doing it
now because we actually don’t need the money but we want to prepare
ourselves for the future to make sure that when we actually go to the
markets and we really need the money, the markets, the investors, the
financial institutions already know us."
Tonight it's being reported that Saudi Arabia has taken out the $10 billion loan. CNBC is reporting:
Saudi Arabia is raising $10bn from a consortium of global banks as
the kingdom embarks on its first international debt issuance in 25 years
to counter dwindling oil revenues and reserves.
The landmark five-year loan, a
signal of Riyadh's newfound dependence on foreign capital, opens the way
for Saudi to launch its first international bond issue. It comes as the
sustained slump in crude encourages other Gulf governments, such as Abu
Dhabi, Qatar and Oman, to tap international bond markets.
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