$3bn new funding to propel PIF-backed Ades expansion

Reuters/Amir Cohen

Saudi oil and gas driller Ades Holding has secured an additional $3 billion from local and regional banks to support potential acquisitions and organic growth.

The Public Investment Fund (PIF)-backed company has upsized its existing syndicate facility through a standby term tranche of $2.7 billion and a revolving credit facility tranche of $300 million.

The standby term tranche in US dollars will make up 38.5 percent of the new loan, supporting expansion. The remaining 61.5 percent will comprise Saudi riyals and support the company’s general purpose.

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The amount used under the standby term tranche, maturing in December 2032, will be repaid semi-annually and includes a bullet repayment of 31.5 percent at the final maturity. The RCF will reach final maturity in June 2032.

Key lenders involved in this funding round include Saudi Awwal Bank, Riyad Bank, Al Rajhi Bank, Arab National Bank, Saudi National Bank, Alinma Bank, Banque Saudi Fransi, Aljazira Bank, Arab Petroleum Investments Corporation and Commercial Bank of Dubai.

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“The additional capital will further strengthen our purchasing power, providing us with greater flexibility to consider and act swiftly on value-accretive acquisitions and other growth opportunities,” said Dr. Mohamed Farouk, CEO of Ades Holding.

The competitive pricing of the new facility further strengthens Ades’ robust financial health, he added.  

Ades, listed on the Saudi bourse in October, has 85 rigs in seven countries, including three in India. There are 36 onshore drilling rigs, 46 jackup offshore drilling rigs, two jackup barges and one mobile offshore production unit.