Lead arrangers Gulf International Bank (GIB), Arab Bank, Calyon Credit Agricole CIB and Emirates Bank International (Riyadh Branch) have arranged an SR3.2 billion ($854.5 million) Islamic contracting facility for the Saudi Binladin Group (SBG).

The facility signing ceremony was held at GIB’s headquarters in Manama today (March 10). GIB is also performing the roles of co-ordinating bank and the facility agent.

The transaction comprises a Murabaha facility, a letters of credit facility and guarantee issuing facilities, and will be used to finance the contract secured by SBG from Saudi Arabian Oil Company (Saudi Aramco) in respect of the construction of the housing project for King Abdullah University of Science & Technology (KAUST), north of Jeddah.

The financing agreement was signed by Yahia Binladin, vice chairman of SBG, Dr Khaled Al-Fayez, GIB’s chief executive officer, and representatives of the other lead arrangers.

The ceremony was also attended by Saad Binladin, Mohammed Binladin, Bahaa Al-Sharief, president - finance division, SBG, and senior representatives of the lead arrangers.

“SBG has an outstanding record in executing large value contracts in the Kingdom of Saudi Arabia. GIB and the other lead arrangers are pleased to have arranged this financing for SBG, which will be used for the purpose of executing a contract associated with a noble project such as KAUST,” said Dr Al-Fayez during the signing ceremony.

Speaking on behalf of SBG, Yahia Binladin said: “The group is proud to have been selected by Saudi Aramco to execute the prestigious project, and we compliment the lead arrangers for arranging the facilities swiftly to facilitate timely execution of the contract.”

KAUST is being built in Saudi Arabia as an international, graduate-level research university dedicated to inspiring a new age of scientific achievement in the kingdom that will also benefit the region and the world. KAUST is the realization of a decades-long vision of the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al Saud.

KAUST will be open to students from Saudi Arabia and the rest of the world, and will be supported by a multi-billion dollar endowment, governed by an independent, self-perpetuating board of trustees.  – TradeArabia News Service