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Overview

ICBC contributes to a $1.43 billion USD syndicated Murabaha loan to Al Rajhi Bank to support sustainability-related activities

Commitments (Constant USD, 2023)$130,000,000
Commitment Year•2023Country of Activity•Saudi ArabiaDirect Recipient Country of Incorporation•Saudi ArabiaOverseas Jurisdiction•QatarSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 25, 2023
Start (actual)
Aug 30, 2023
Last repayment (originally scheduled)
Aug 25, 2026

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Mashreqbank PSC
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Banks

  • First Abu Dhabi Bank PJSC (FAB)

Receiving agencies

Private Sector

  • Al Rajhi Bank (formerly Al Rajhi Banking and Investment Corporation)

Collateral providers

Private Sector

  • Al Rajhi Bank (formerly Al Rajhi Banking and Investment Corporation)

Loan description

ICBC contributes to a $1.43 billion USD syndicated Murabaha loan to Al Rajhi Bank to support sustainability-related activities

Interest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

On August 25, 2023, a syndicate of 11 banks — including the Doha Branch of the Industrial and Commercial Bank of China (ICBC) and with First Abu Dhabi Bank PJSC (FAB), Mashreqbank PSC, and SMBC as mandated lead arrangers and joint bookrunners — entered into a $1.43 billion USD syndicated senior secured sustainable commodity Murabaha facility agreement with Al Rajhi Banking and Investment Corporation — a Saudi Arabia-incorporated bank headquartered in Riyadh and listed on the Saudi Exchange — to support sustainability-related activities. The term loan carried a maturity period of three years and a final maturity date of August 25, 2026 and was divided into a $1.105 billion USD Tranche A and a $325 million USD Tranche B. The proceeds were to be used to support sustainability-related activities as part of its commitment to Saudi Vision 2030's sustainable transformation. The loan was first drawn down on August 30, 2023. The loan made ICBC the first Chinese bank to participate in Islamic Murabaha facilities within Gulf Cooperation Council (GCC) countries. The loan was 1.9 times oversubscribed in syndication from its initial target.

Staff comments

1. The individual contributions of the 11 lenders to this $1.43 billion USD loan are unknown. AidData has assumed each lender contributed to each tranche. Therefore, for the time being, to estimate ICBC's contribution, AidData has assumed that each lender contributed equally ($130,000,000 USD) to the loan syndicate.