Saudi Binladin Group in talks to rollover debt

Saudi Binladin Group (SBG) is in talks with local and regional banks to reschedule its outstanding debt, MEED reported, citing unnamed and informed sources.

The Jeddah-based contractor is also seeking new credit facilities from regional lenders to meet its short-term liabilities.

A spokesperson for SBG said such financial decisions would be handled exclusively and directly between the company’s finance department and relevant stakeholders. No comment was made on the debt payment schedule or whether the company would plan to formally restructure its debt.

In addition, several lenders in the kingdom that are already heavily exposed to projects led by SBG, have been reluctant to open new credit lines, a banker familiar with the matter said.

SBG, which is currently carrying out SAR 80 billion worth of projects, has recently seen its cash flow slow in line with the number of projects being awarded within the country. The contractor mainly relies on mega projects, which had been capped last year as part of austerity measures enforced by the government.

The contractor has come under much scrutiny since the collapse of a crane in Mecca's Grand Mosque which killed more than 100 people in September. As a result, it was asked to stop work on the Prophet’s Mosque expansion project in Madinah.