Saudi Binladin said to get extension on SAR 10 bln Grand Mosque loan

Creditors have agreed in principle to Saudi Binladin Group’s (SBG) request for extending a SAR 10 billion Sharia-compliant credit facility used to pay for the Grand Mosque expansion project in Mecca, Reuters has reported citing sources.

SBG, the kingdom’s largest contractor, had in January asked for the credit to be extended beyond its maturity at 2017-end to the end of 2019 to complete the mosque project, which was delayed as Saudi government deferred some of its spending plans.

The new agreement will be finalized by March, as SBG will continue to pay interest throughout the debt tenure, according to the report.

Dubai Islamic Bank was the lead bank on the facility, along with other UAE banks, including Emirates NBD, Noor Bank, Ajman Bank, Union National Bank (UNB) and Mashreq Bank, according to the sources.

Saudi Arabia’s construction sector has been hit hard by project delays and late payments, as the government slashed spending in the wake of plunging oil prices.

SBG, in particular, was also affected by a temporary suspension from bidding for state contracts, after a crane collapse killed 107 people at the Grand Mosque in 2015.