Tuwairqi Group has signed a $1.9 billion debt restructuring of bank loans, London-based MEED said, citing anonymous bank lenders. Final documentation for the restructuring has been signed by a group of 26 banks including National Commercial Bank, National Bank of Kuwait and Standard Chartered. Restructuring details were not disclosed but banks are not taking a haircut on the principal loans made to the company. "This is probably the largest debt restructuring to have been completed so far in Saudi Arabia, so it is a significant achievement," one Riyadh-based banker said. Executives at Al-Tuwairqi were not immediately available to comment. The restructuring has been in the works since late 2008 after an Al-Tuwairqi unit – Al-Ittefaq Steel Products – took a hit from a sharp drop in steel prices. HSBC was hired in 2009 to advise the company on the restructuring. According to "Saudi Arabia Steel Industry Forecast to 2013", the consumption of steel in the Kingdom is anticipated to gain an uninterrupted momentum from the government backed massive infrastructure projects. An estimated $400 billion investment will be spent on large infrastructure projects during the next five years. This will further boost the steel demand in the Kingdom and take iron and steel consumption to over 26 million metric tons by 2015. Responding to the fast growing demand, huge capacity expansion programs are under way in the Saudi steel industry, and it is expected that, these will have an impact on steel imports in future. Saudi Arabia, the second largest sector in terms of iron and primary steel production capacity and the largest in terms of infrastructure spending, has led the transformation in the GCC infrastructure scenario. – Saudi Gazette with agencies in recent years with plans to develop six economic cities and other major development schemes.
