Saudi Binladin receives $2.9bn government loan
Saudi Binladin Group has received a $2.9bn loan to help revive the company, with further cash transfers possible in the near future
Saudi Binladin Group has received a $2.9bn loan to help revive the company, with further cash transfers possible in the near future.
The loan will be used to repay owed staff wages, a result of payment delays caused by the industry slowdown, as well as bank creditors.
The money, for which land owned by the Binladin family will act as security, will also go towards completing key government projects including the King Abdullah Financial District in Riyadh, which needs to be ready in time for Saudi Arabia to host the G20 Summit in 2020, Arabian Business said, citing Reuters sources.
The government is expected to take a reported 35% stake in the company as part of a financial settlement with state authorities following the detention of chairman Bakr Binladin and his brothers Saleh and Saad in an anti-corruption crackdown in November.
As Saudi Arabia’s biggest builder, Binladin had more than 100,000 employees at its height, though in recent years the construction giant has faced numerous challenges with stalled projects and delayed payments amid lower oil prices and tightening government spending.
In 2015, the company was also temporary excluded from new state contracts following a crane accident that killed 107 people at Mecca’s Grand Mosque.