Jefferies Enters Saudi Private Credit with $125 Million Erad Facility

Jefferies has executed its first private credit deal in Saudi Arabia, leading a $125 million asset-backed facility for Erad alongside Channel Capital.

Key numbers:

• $125 million facility to expand SME lending

• $250 billion SME financing gap across the Gulf

• $2.4 billion asset-backed facility raised by Tamara two months earlier, backed by Goldman Sachs and Citigroup

• $33 million prior debt round raised by Erad earlier this year

• Private credit was almost non-existent in Saudi Arabia until recently, now accelerating as domestic banks face capital constraints

The deal positions Jefferies among the global banks moving aggressively into Gulf private credit, targeting SME working-capital demand and the region’s widening liquidity gap.

Solitaire & Co.