Rawabi closes Saudi’s largest private sector syndicated financing of $2bn

By Arya M Nair, Official Reporter
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Rawabi closes $2bn syndicated financing

Rawabi Energy and its subsidiaries have concluded the financial close of $2 billion Syndicated multi-currency senior secured term and revolving SAR and USD facilities, marking one of the largest private sector syndicated financing in the Kingdom of Saudi Arabia.

Led by strong market demand, the landmark Transaction was oversubscribed by 1.33x, reinforcing confidence in the Kingdom’s economy and the robust prospects for growth driven by the strategic vision of the leadership. 

The Transaction also highlights the investor trust in Rawabi Energy and Rawabi Holding Group, underpinned by strong fundamentals and exceptional expertise in the energy sector and other sectors. Several national and regional banks successfully arranged, structured, and concluded the market clearing structure and syndication strategy for Rawabi Energy.

The Transaction, one of the largest of its kind in the history of the Saudi market, represents a key milestone for Rawabi Energy, which devised a successful market clearing structure and syndication strategy. It also highlights the success of the company’s goal to expand Rawabi Energy’s bank group to include regional banks and attract USD liquidity on a long-term basis. The Transaction will accelerate its growth plans, underpinned by a full capital structure take-out and refinancing of existing indebtedness.

HSBC Saudi Arabia acted as the sole Structuring Bank, Joint Global Coordinator, Global Agent, Facility Agent and Investment Agent. Gulf International Bank B.S.C. and Gulf International Bank, Saudi Arabia (GIB) acted as Joint Global Coordinators, Mandated Lead Arrangers, Facility Agent, and Security Agent. The Mandated Lead Arrangers included Saudi Awwal Bank (SAB), Saudi National Bank (SNB), Alinma Bank, Riyad Bank, Bank Al Jazira, and Al Rajhi Banking and Investment Corporation (AlRajhi Bank). The lending group also included First Abu Dhabi Bank (FAB) acting as Lead Arranger.

Abdulaziz Al Turki_Rawabi closes $2bn syndicate financing
Abdulaziz Al Turki
Rawabi Holding

“We are delighted to receive this level of support on our debut Dual-Currency Syndicated transaction from the local and regional banking community. This transaction demonstrates the strong partnership we have with our financiers, who have supported our growth over the years and played a key role in positioning Rawabi Energy as a National Champion, aligning with our wise leadership’s limitless ambitions.” 

“This transaction demonstrates the robustness and agility of Rawabi Energy. As a major player in the Energy Services sector, we have committed our resources toward sustainable growth, best-in-class quality and technology leadership. This financing marks an additional diversification element, unlocks capital and showcases the level of sophistication the group has,” said Mr. Osman Ibrahim, Rawabi Holding Vice Chairman and Group CEO and Rawabi Energy Vice Chairman.

Rawabi Energy, a closed joint stock company, was incorporated in AlKhobar in 2020 to consolidate Rawabi Holding Group’s Energy Services operations into integrated onshore and offshore oil and gas field services. Rawabi Energy provides services to its strategic clients, the national and international oil companies. Rawabi Energy company comprises Rawabi Vallianz Offshore Services (RVOS), Rawabi Oil & Gas (ROG), and United Safety Limited in Canada, to name a few, and has interests in several other international entities.

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