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Riyad Bank reportedly secured a USD 1.5 bn syndicated loan, with the bulk of commitments coming from lenders in Greater China as Middle Eastern borrowers increasingly tap Asian liquidity, Bloomberg reports, citing a source it says is in the know.
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The details: The loan drew participation from 34 banks across China, Taiwan, and South Korea and includes a USD 500 mn greenshoe option. The facility features a five-year tranche with a margin of 90 bps over the Secured Overnight Financing Rate (SOFR) and a seven-year tranche with a margin of 117.5 bps over SOFR.
Gulf borrowers — particularly in Saudi Arabia — are increasingly turning to Asian lenders to fund large-scale expansion plans. Middle Eastern entities have raised about USD 12 bn in syndicated loans from Asia Pacific banks so far in 2025, nearly triple last year’s level and the highest on record, according to Bloomberg’s tally. Among them is Banque Saudi Fransi, which has reportedly been seeking to land a USD 750 mn syndicated loan from Asian lenders to cover its general corporate expenses. Saudi Electricity was also reportedly looking eastward for a USD 1 bn facility.
The rationale: Middle Eastern borrowers have been turning to Asian lenders to seek funding for costly diversification plans amid pressure from lower oil prices. With rising borrowing needs, they have become increasingly open to expanding lender relationships and accessing new currencies and tenors not readily available in local markets, Standard Chartered’s Global Head of Loan Syndicate Amit Lakhwani told Bloomberg earlier this year.
ICYMI- Saudi corporate credit risk remains contained as companies deleverage, even with credit demand soaring, driven by Vision 2030 capital expenditure, S&P Global said in a research note last week. S&P forecasts 10% annual credit growth for the next two years but notes risks from project execution failures or cost overruns, adding that these risks could be amplified as Saudi banks turn to external debt, which approached 5% of domestic loans in August 2025.
