Saudi Arabia

Rather than cherry picking its favourite banks for its $10bn sovereign loan, the Kingdom of Saudi Arabia will “pull together a handful of banks” to get the deal done, according to a banker in discussions with the sovereign.

You would think that a role in Saudi Arabia’s first loan in over two decades would be the golden ticket for any bank, but it’s not to everyone’s taste.

Saudi Aramco and China Petrochemical Corp (Sinopec) will complete the $4.7bn loan for their joint venture refinery within the next week, according to bankers.

Bankers pitching to lead the first loan for Saudi Arabia in more than 20 years say the borrower will tussle for tight pricing even though the Gulf’s other sovereigns and blue chips face further downgrades, write Elly Whittaker and Virginia Furness.

A swathe of ratings downgrades. one of which prompted Bahrain to first cancel a tap and then reprint it this week at a higher yield, is just one factor that will force Middle East sovereigns to pay up for bond funding just when they need it the most, writes Virginia Furness.

Saudi Arabia will likely issue its long anticipated debut dollar bond in dual sukuk and conventional format, according to bankers in the region.

A rally this week in crude oil has reduced short-term pressures, but exploration and production firms still face existential threats as liquidity and M&A odds worsen, said analysts.

Saudi Arabia’s central bank has told the country’s banks to stop selling options on riyal forwards — products which would let investors benefit if the value of the riyal falls.

Ever since it emerged that Saudi Aramco was considering a public listing, equity capital market specialists have been trembling at the potential for the largest IPO in history. Such a deal could also transform the Saudi exchange, finally bringing a rush of foreign investment into the country’s stocks.

Equity capital market banks will love an IPO of Saudi Aramco, or parts of it, if one happens. But getting there is going to be arduous and could disrupt other business this year. The best thing for the market would be a quick and clear-cut process. Sadly, bankers say that is unlikely.

Saudi Aramco and China Petrochemical Corp (Sinopec) are in talks for a new money loan for the Yanbu Aramco Sinopec Refining Co (Yasref), according to bankers.

Saudi Arabia gave equity capital market bankers hungry for mega-deals something to look forward to on an otherwise bleak midwinter day of trading on Thursday, as its deputy crown prince touted the idea of a sale of Saudi Aramco shares.