Saudi Arabia plans to raise $11 billion from a syndicated loan as the Gulf country seeks to achieve Vision 2030 and finance its investment plans, according to media reports.
According to the report, the Industrial & Commercial Bank of China Ltd (ICBC) was appointed by the Saudi Ministry of Finance as coordinator and bookrunner for the long-term senior unsecured loan.
The ICBC invites other banks and parties interested in investing in the loan.
The 10-year loan is offering an interest rate of 100 basis points over the Secured Overnight Financing Rate — the usual reference rate when borrowing in dollars, the report added.
Saudi Arabia has planned to achieve its Vision 2030, aiming to diversify its investment in the oil sector to other non-oil such as construction, technology, tourism, and infrastructure.
The non-oil sector grew by 5.5% in the second quarter of 2023, according to CNBC.
Some OPEC+ nations are carrying out 1.66 million bpd of cuts until the end of 2024, and Saudi Arabia lowered output by a further 1 million barrels per day in July and August.
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