GIB arranges $2.6bn for Saudi Binladin
Manama, November 23, 2011
Saudi Binladin Group (SBG) has signed a SR8.5 billion ($2.266 billion) financing facility with a consortium of banks led by Gulf International Bank (GIB) for the expansion and development of King Abdulaziz International Airport (KAIA) in Jeddah.
SBG last year won the SR27.1 billion contract to develop KAIA from the General Authority of Civil Aviation, Ministry of Defense and Aviation and the Inspectorate General.
GIB was initially mandated to arrange a SR6 billion syndicated facility for SBG, which subsequently was raised to SR8.5 billion to accommodate additional financing requirements of SBG, said a statement.
The ceremony was attended by Engineer Yahia Binladin, SBG’s vice chairman; Dr Yahya Alyahya, GIB’s chief executive officer; and representatives from the financial institutions that participated in the syndicated facilities: Abu Dhabi Commercial Bank, Maybank (Malaysia), Samba, Union National Bank, Ahli United Bank, Emirates NBD, Arab National Bank, BNP Paribas, Arab Banking Corporation, Arab Bank and the Bank of Bahrain and Kuwait.
Dr Alyahya said: “We are delighted to have coordinated the arranging of these financing facilities for one of the largest projects that has been awarded by the General Authority of Civil Aviation (GACA) in KSA. Once completed, the airport will facilitate and ease traffic flow to the holy places in the Kingdom.”
He added: “SBG has an outstanding track record in executing large value contracts in the GCC and beyond. GIB and the other financial institutions present today are pleased to have supported SBG for this very important project, and look forward to continue their important role in financing major contracts in the GCC.”
Engineer Binladin said: “SBG is proud to have been selected by GACA to execute this prestigious project, and we compliment GIB and the banks for supporting SBG towards timely execution of this important contract.”
GIB is a leading bank in the Middle East with its principal focus on the Gulf Cooperation Council (GCC) states. The Bank is owned by the six GCC governments, with the Public Investment Fund of Saudi Arabia holding a majority stake (97.2 per cent). – TradeArabia News Service