Font Size

- Aa +

Thu 1 Aug 2019 12:12 PM

Font Size

- Aa +

Saudi Binladin Group said to seek financial advisors for debt restructuring

Sources have told Reuters the debt amounts to $20-$30bn

Saudi Binladin Group said to seek financial advisors for debt restructuring
Binladin is now 36.22 percent owned by Istidama, a subsidiary of the Saudi Finance Ministry, and 63.78 percent by Binladin Company for Development and Commercial Investment.

Saudi Binladin Group is said to be seeking a financial advisor for a restructuring of the group’s debt, which is calculated at between $20 and $30 billion, according to media reports.

Saudi Arabia’s government took roughly a one-third stake in the construction company – which is considered vital for the kingdom’s infrastructure projects – after several family members were caught up in an anti-corruption campaign in 2017.

According to a Reuters report, five sources familiar with the matter have said that Binladen Group has sent a request for proposal to select international advisors to reorganise the entire group’s debt.

Two of the sources told Reuters that the debt amounted to $20 billion to $30 billion.

Binladin is now 36.22 percent owned by Istidama, a subsidiary of the Saudi Finance Ministry, and 63.78 percent by Binladin Company for Development and Commercial Investment.

Currently, only two Bin Laden brothers are represented on the firm’s nine-person board, a stark contrast to the family’s earlier control before brothers Baker, Saleh and Saad were detained by Saudi authorities.

For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.