Gulf International Bank Saudi Arabia has launched a US$250 million three-year senior unsecured term loan facility as the lender seeks to strengthen its funding base and support general banking operations.
The financing has entered general syndication, with First Abu Dhabi Bank and Standard Chartered appointed as lead arrangers and bookrunners for the transaction, according to industry reports.
The proceeds from the facility will be used for general funding purposes, allowing the Saudi-based lender to support its ongoing operations and financial activities.
Gulf International Bank Saudi Arabia is jointly owned by Saudi Arabia’s sovereign wealth fund, Public Investment Fund, and Bahrain-based Gulf International Bank.
The new loan follows increased activity by Gulf International Bank in international debt markets as financial institutions across the region seek diversified sources of funding.
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In May, Gulf International Bank completed its first international Islamic syndicated financing transaction, closing a $500 million three-year syndicated murabaha facility.
The transaction marked the bank’s debut Islamic syndicated facility in global markets and highlighted growing demand for Sharia-compliant financing structures in the Gulf region.
A murabaha facility is a common Islamic financing structure in which a financial institution purchases an asset and sells it to the customer at an agreed profit margin, instead of charging conventional interest.
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The latest loan facility comes as Gulf banks continue to expand their balance sheets and seek additional funding to support growth opportunities linked to economic diversification programmes across the region.
Saudi Arabia’s financial sector has been undergoing rapid transformation under the kingdom’s Vision 2030 strategy, which aims to expand investment, strengthen private sector growth and develop the financial services industry.
The participation of major international banks as arrangers reflects continued investor confidence in Gulf financial institutions and the region’s banking sector.
The financing also underscores the growing role of syndicated loans as banks across the Middle East tap global markets for liquidity and strategic funding.
Gulf International Bank, headquartered in Bahrain, operates across several markets and provides corporate, investment and commercial banking services.
The bank has increased its focus on strengthening its presence in Saudi Arabia, one of the region’s largest economies and a key market for financial sector expansion.
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The new facility is expected to further support the bank’s funding strategy as it continues to respond to evolving market conditions and opportunities in the Gulf banking sector.
