Saudi Binladin to get extension on $2.7bn loan: Reuters

Saudi Binladin Group’s (SBG) looks to have secured a two-year extension on a SAR 10bn ($2.7bn) Islamic credit facility used to fund delayed building work at the Grand Mosque in Mecca, Reuters said citing unammed sources.

The news agency reported last month that the cash-strapped construction contractor had asked a syndicate of banks for the credit to be extended to the end of 2019. This had now been agreed, subject to the signing of legal documents, and should be finalised by March, one source told Reuters.

The loan will now have a similar timeframe for the completion of the mosque project, which has been delayed to allow the Saudi government to defer some of its spending plans, Reuters said.

As the biggest contractor in the kingdom, SBG has been hard hit by the downturn in the economy following the fall in oil prices over the past two years.

Fresh contracts awards have slowed to a trickle as the government has reined in spending on construction projects.