China Development Bank contributes $200 million USD to a $800 million USD tranche of a $2.020 billion USD syndicated facility for King Abdullah Project 2 (Linked to Record ID#97639)

Project narrative

On October 6, 2011, financial close was reached on a deal in which a syndicate of seven banks — including China Development Bank Corporation (CDB) and the Industrial and Commercial Bank of China (ICBC) — entered into a $2.020 billion USD syndicated facility agreement with Saudi Oger Ltd. — a Saudi construction company — for the King Abdullah Project 2 (KAP2). The facility was divided into three tranches: a $800 million USD senior secured term loan tranche with a maturity period of three years and seven months (3.583 years), a final maturity date of December 2014, no grace period, an interest rate of LIBOR plus a margin of 250 basis points (bps), and an average life of under 30 months; a SAR 3.97 billion ($1.050 billion USD) advance payment guarantee facility tranche with a maturity period of three years, a final maturity date of April 2014, an average life of two years, and a fixed guarantee fee of 1.25% (to be Shariah-compliant); and a $170 million USD senior unsecured working capital tranche with a maturity period of three years and three months (3.25 years), an interest rate of LIBOR plus 400 bps from year one to two and 425 bps from year two to maturity, and an average life of one year. All tranches were amortizing. All four lenders to the $800 million USD senior secured term loan — CDB, ICBC, Emirates NBD Bank PJSC, and Deutsche Bank — contributed $200 million USD. Record ID#97638 captures CDB's contribution. Record ID#97639 captures ICBC's contribution. All six lenders to the SAR 3.97 billion advance payment guarantee facility tranche — CDB, Deutsche Bank, Emirates NBD, Natixis, Al Hilal Bank, and Barclays Capital — contributed $175 million USD. Unless drawn down, however, AidData does not consider guarantee facilities to be financial flows. The advanced payment guarantee facility acted as security for any pre-funding provided by Saudi Ministry of Interior Deutsche Bank was the sole lender to the $170 million USD working capital tranche. Deutsche Bank underwrote all tranches. CDB, Deutsche Bank, and Emirates served as the initial mandated lead arrangers and bookrunners for both the $800 million USD term loan and the SAR 3.97 billion advance payment guarantee facility. ICBC joined as a mandated lead arranger for the $800 million USD term loan. Al Hilal and Barclays Capital served as lead arrangers for the SAR 3.97 billion advance payment guarantee facility. Natixis served as mandated lead arrangers for the SAR 3.97 billion advance payment guarantee facility. Retail syndication had been launched at the beginning of September 2011 with commitments due on October 6, 2011, although that deadline was extended due interest from lenders in an Islamic tranche. The purpose of the facility was to finance the King Abdullah Project 2, which involved the construction of police training facilities in Saudi Arabia by Saudi Oger under a contract from the Saudi Ministry of Interior. Specifically, it involved the construction of security headquarters in various provinces of Saudi Arabia. The project included 44 sites across five zones in Saudi Arabia with a total construction area of over 3.5 square meters, and consisted of the construction of medical centers, training facilities, shooting ranges, clinics and forensic laboratories, recreational facilities, auditoriums and congregational facilities, mosques, shops, sports buildings, and other institutional facilities to further Saudi Arabia's security facilities. In addition to Saudi Oger, NKY was involved in project. Scati provided CCTV equipment for the project {{see ID#181005}.} The project was launched in 2013. It had a target completion date of 2021. Saudi Oger shut down in July 2017. When it shut down, this project was not reported as part of its active contracts.