To best cover the requirements of large industrial and commercial projects, Banque Saudi Fransi started offering its services relating to financial advisory, project and structured finance, as well as syndicated loans in the early 1980s.
The bank has been involved in structuring and arranging successfully a huge number of deals especially in the construction and the industrial sectors.
Since Banque Saudi Fransi started this service, the bank has been involved in more than 150 deals and has been one of the leading arrangers and/or underwriters for syndicated loans keeping its pre-eminent position as one of the leading corporate banks in the Kingdom.
Banque Saudi Fransi has also been active in financing large infrastructure and industrial projects within the region and has arranged and participated in most of the project financing proposals for semi government institutions.
In addition, Banque Saudi Fransi has played a significant role as an arranger in two of the most important private petrochemical projects in the Kingdom in recent years. As a full-service local commercial bank, Banque Saudi Fransi is able to provide both short-term and long-term financing in Saudi Riyals, as well as in other major currencies.
Project and structured financing is a major avenue for the provision of medium and long-term finance for new capital developments, both for new and expansion projects. Saudi commercial banks have played a key role in the development of industries, especially in the petrochemical sector, through the provision of non-limited financing. Banque Saudi Fransi has been one of the leading supporters of such industrial ventures, and has provided project finance loans to both grass-root and expansion projects.
On the commercial sector side, provision of finance to contractors carrying-out multi-billion Riyal infrastructure and other contracts has been a major challenge. This need has been fulfilled and catered for through Banque Saudi Fransi's structured finance specialists. Structured finance often involves numerous parties, complex technical and contractual agreements, and multi currency financing.
As financial advisor, Banque Saudi Fransi can assess and determine the technical and financial viability of projects, assist in resolving legal, accounting, taxation and regulatory issues, develop optimal financing structures, identify potential lenders, and manage the negotiation processes.
The borrowing requirements of major undertakings, such as petrochemical and power projects, and major infrastructure contracts, are often too large to be met by one financial institution. Syndicated lending resolves this challenge by arranging a group of lenders that can collectively negotiate, structure, arrange, and provide the required financing.
Banque Saudi Fransi enjoys an excellent track record in this field, having played an arranger or co-arranger role in virtually every major syndicated deal in Saudi Arabia over the past decade. In fact, the Bank is one of the selected few local banks, that participate in regional and international transactions. In addition, to being fully abreast of debt market trends in Saudi Arabia, Banque Saudi Fransi, through participation in non-Saudi deals, retains a keen insight into international market trends.
Banque Saudi Fransi often plays the role of the comprehensive solution provider, that advises on debt structuring, employs its network to bring other lenders into the transaction, and manages the ongoing relationship on behalf of the syndicate.