THE Power and Water Utility Company for Jubail and Yanbu (Marafiq) signed a long-term syndicated loan agreement worth SR2.5 billion with five Saudi banks last Nov. 30. The fund will be used to partly finance Marafiq's ambitious capacity expansion plans to implement different projects in the two industrial cities of Jubail and Yanbu. The loan is lead arranged by HSBC Saudi Arabia and the other participating banks are SAMBA, SABB, Riyad Bank, Al Rajhi and National Commercial Bank.
Abdullah Al-Buainain, Marafiq's CEO, said: “We are very happy with the achievement we have realized with the help of our partners in the financial sector. The support Marafiq received from the participating banks underlines the credibility and the trust our company enjoys in the market.”
Fahad Al-Saif, Managing Director, HSBC Saudi Arabia, said: “Having worked with Marafiq through multiple loan and capital market transactions, we are satisfied by being able to provide this syndicated loan. HSBC is proud to be associated with Marafiq which notably contributes towards the development of the industrial infrastructure in Saudi Arabia.”
Marafiq issued its first SR2.5 billion sukuk in 2013, which attracted strong demand from the investor community in the Kingdom. The previous syndicated Murabaha loan transaction completed by Marafiq in 2012 was valued at SR4.5 billion. — SG
