RIYADH, SAUDI ARABIA – Saudi Arabia raised a syndicated loan of US$11 billion (SAR 41.25 billion) to fund a budget deficit, media reported.
The 10-year loan was funded by a group of banks including Industrial and Commercial Bank of China, Citigroup Inc, First Abu Dhabi (FAB), and HSBC Holdings Plc, according to sources familiar with the matter.
The loan has a margin of 100 basis points above a benchmark known as SOFR, or the secured overnight financing rate (SOFR).
On September 30, the Saudi Ministry of Finance forecast SAR 1.18 trillion revenue and SAR 1.26 trillion expenditure for 2023, with a deficit of SAR 82 billion.
