Saudi Binladin Group creditors agree to extend its SAR 4 billion Islamic credit facility by two years.
Saudi Binladin Group’s creditors have agreed to extend by two years a SAR 4 billion Islamic credit facility to pay for building work at the Grand Mosque in Makkah, according to Reuters.
The Saudi Binladin Group (profile), one of the largest construction firms in the region and one of the mainstays of Saudi Arabia’s construction sector, has been struggling of late.
Creditors have signed documentation to extend by two years SAR 4 billion of the total SAR 10 billion of a facility it had drawn down, banking sources told the wire service. The credit would be extended from the end of 2017 to the end of 2019.
The loan will now have a similar time frame to the completion of the mosque project, which has been delayed to allow the Saudi government to defer some of its spending plans.
The facility will carry a profit rate of about 7.5 percent, sources told Reuters.
Like other contractors in the region, the Saudi Binladin Group has been hit by a stalling of projects and delayed payments as governments curb spending due to weaker oil prices.
Dubai Islamic Bank was the lead bank on the facility, Reuters added, with UAE banks Emirates NBD and Noor Bank also participating. Another source told the wire service that Ajman Bank, Union National Bank and Mashreq were also involved.