Photo: Investcorp
Banks put more money than expected into a loan for one of the Gulf's biggest investment firms, as it steps up deals in Saudi Arabia.
Bahrain-based Investcorp closed a $550 million loan with conventional and Islamic portions, the company said on Thursday. It had launched the deal at $400 million and raised it after strong demand.
The money will go to general business needs and to refinancing existing debt, said Abbas Rizvi, Investcorp's chief financial officer. The deal shows "continued confidence of the international banking community," he said.
The Saudi angle
Saudi Arabia has become one of Investcorp's busiest markets. Late last month, its Saudi Pre-IPO Growth Fund bought a minority stake in REDA Gulf Holding, a fire-safety firm, alongside AlTouq Group. It was the fund's fifth deal, after e-commerce platform Salla, trucking app TruKKer, internet provider NourNet and Metra.
The fund is backed by Jada, a PIF unit, and Saudi Venture Capital Company. Investcorp also formed a partnership with SNB Capital in February to invest in the kingdom.
Why it matters
Investcorp manages about $64 billion. More debt on good terms gives it room to keep doing deals as Saudi Arabia pushes companies toward listing on Tadawul.
