Saudi Binladin International carries out largest debt restructuring in the region
As much as 75% of Binladin's debts are held by Saudi banks
Foreign workers work at a construction site, following the outbreak of the coronavirus disease (COVID-19), in Riyadh, Saudi Arabia, May 7, 2020. Image used for illustrative purpose
By Staff Writer, Arab News
RIYADH: Saudi Binladin International Holding is carrying out the largest debt restructuring in the Middle East, close to SR33 billion ($8.7 billion), with as much as 75 percent involving Saudi banks, said CEO Khalid Al Gwaiz on Thursday.
The company has obtained principal approvals from creditors for the debt restructuring and hopes to reach a formal agreement with them by the end of June and a final agreement by September, Al Gwaiz told Al Arabiya.
Binladin has an integrated transformation program that includes budget structuring and changes to its business model with the aim of helping it cope with recent developments in the market, he said.
The regional construction sector has been hit hard by the weakening of oil prices since 2014 and the associated decline in the real estate sector which has plunged some of the industry’s biggest names into financial distress.
Binladin has identified about SR1 trillion of opportunities in the Kingdom’s construction market linked to huge government projects that will allow it to pay creditors, Al Gwaiz said.
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