Saudi Arabia’s Rawabi Energy concludes SAR7.175bn syndicated financing

Rawabi Energy has successfully closed syndicated multi-currency senior secured term and revolving SAR and USD facilities worth SAR7.175bn, making it one of the largest private sector syndicated financing seen in Saudi Arabia.

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 national and international oil companies.

The transaction was oversubscribed by 1.33x, and 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.

HSBC Saudi Arabia acted as the sole structuring bank, joint global coordinator, global agent, facility agent and investment agent. Gulf International Bank and Gulf International Bank – Saudi Arabia  acted as joint global coordinator, mandated lead arranger, facility agent and security agent.

The mandated lead arrangers included Saudi Awwal Bank, Saudi National Bank, Alinma Bank, Riyad Bank, Bank Al Jazira, and Al Rajhi Bank. The lending group also included First Abu Dhabi Bank acting as lead arranger.

Rawabi Energy seen as a national champion

Abdulaziz Ali AlTurki, Rawabi Holding Group chairman and the chairman of Rawabi Energy, said: “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.”

Ahmad AlShubbar, the group VP of Treasury & Strategy, board Member of Rawabi Energy, said: “The group has shown its ability to fund its operations throughout the economic cycles, thanks to the level of transparency, strict corporate governance, management agility and resilience of the business.

“After successfully tapping the debt capital markets, we take a step further and tap the loans capital markets with a groundbreaking debut syndicated facility which received a remarkable level of demand and achieved our transaction objectives.”