(Reuters) – Saudi Arabia plans to raise $11 billion from a syndicated loan as the kingdom seeks to finance its investment plans, Bloomberg News reported on Friday.
The kingdom’s Ministry of Finance has appointed Industrial & Commercial Bank of China Ltd (ICBC) as coordinator and bookrunner for the long-term senior unsecured loan, the report said citing people familiar with the matter.
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.
ICBC has invited other banks to participate in the loan and has asked interested parties to respond before mid-October, Bloomberg reported.
Saudi Arabia’s Ministry of Finance and ICBC did not immediately respond to a Reuters request for comment.
Personally spearheaded by Crown Prince Mohammed bin Salman, Saudi Arabia has embarked on an ambitious economic plan known as Vision 2030 to diversify into sectors such as tourism, develop massive infrastructure projects, and grow the financial and private sectors.
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, has been tasked with delivering Vision 2030 targets, which requires billions in investment.