Saudi Binladin Group said to seek advisors for $30bn debt restructure
The Saudi Arabian contractor has issued RFPs to international advisors to reorganise $20-30bn of debt, Reuters reports
Saudi Arabian contractor Saudi Binladin Group (SBG) is reportedly seeking a financial advisor to restructure its group debt, which could be valued at $20-30bn (SAR75-112.5bn), in line with efforts to restructure the company that the Saudi Arabian firm is said to have taken a 36.22% stake in from Bin Laden family members.
According to a report by Reuters, SBG has reportedly issued a request for proposals to a group of international advisors to reorganise the debt.
A source told Reuters that the restructuring request "is likely to be met with concern by Saudi banks bruised by several multibillion-dollar corporate debt restructurings in recent years", adding that creditors were expected Saudi Arabia's Ministry of FInance to "revive" the company "with government loans".
Its report added: "[Creditors] are wary of any sign of a similar outcome to a situation involving another construction giant, Saudi Oger, which required banks to make painful write-offs on their loans after a government effort to save the firm failed."
SBG's name was changed to Binladin Group Global Holding after the government-led restructuring effort, and the firm's 36.22% stake is reportedly owned by Istidama, a subsidiary of Saudi Arabia's finance ministry, with the remaining 63.78% held by Binladin Company for Development and Commercial Investment.