Khaberni - Informed sources said that the Kingdom of Saudi Arabia is conducting talks to raise up to $10 billion in a rare loan deal for the kingdom, part of efforts to secure necessary financing for Crown Prince Mohammed bin Salman's plan to diversify the Saudi economic sources.
Bloomberg News Agency quoted the sources saying that the Saudi Ministry of Finance has held talks with banks, including major Wall Street banks, regarding the loan, adding that no final decision has been reached yet, and that the kingdom may decide to abandon the move if it does not secure a suitable interest rate or if market conditions are not favorable.
It is noteworthy that Saudi Arabia has so far focused primarily on raising funds through bond sales. The kingdom is one of the most active countries in the sovereign bond market for emerging economies, having raised nearly $20 billion from bond sales this year, slightly less than the record set in 2017.
At the same time, it is rare for Saudi Arabia to secure direct loans, as the kingdom has concluded at least two large loan deals worth $10 billion or more since 2016, according to data collected by Bloomberg.
Bloomberg noted that the Saudi Ministry of Finance did not respond to a request for comment on these reports, while Saudi officials had previously stated that they are looking to explore alternative financing options as part of plans to diversify the kingdom's funding sources.
