Saudi Binladin Group hires adviser to restructure $15bn in debt

Logo of of the Saudi BinLaden Group on their headquarters in Jeddah. (File/AFP)
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Updated 25 April 2020

Saudi Binladin Group hires adviser to restructure $15bn in debt

  • The restructuring of the Kingdom’s biggest builder aims to reorganize its assets into sector-led businesses, streamline its operations, and ramp up activity across key projects and businesses
  • For decades Binladin was Saudi Arabia’s highest profile construction group

LONDON: Saudi Binladin Group has hired investment bank Houlihan Lokey Inc. to help advise on the restructuring of an estimated $15 billion of debt.
The Los Angeles-based bank will help formulate “a comprehensive review and financial restructuring of SBG’s capital structure,” Bloomberg reported, citing a statement from Binladin International Holding Group.
The restructuring of the Kingdom’s biggest builder aims to reorganize its assets into sector-led businesses, streamline its operations, and ramp up activity across key projects and businesses, the news wire said.
For decades Binladin was Saudi Arabia’s highest profile construction group, delivering major infrastructure projects such as roads and airports as well as working in the holy cities of Makkah and Madinah.
However it was heavily exposed to the construction slowdown in the country which followed in the wake of the 2014 oil price collapse which saw construction spending slow across the region.


Conflict-hit Libya to restart oil operations but with low output

Updated 10 July 2020

Conflict-hit Libya to restart oil operations but with low output

  • There is significant damage to the reservoirs and infrastructure
  • A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker

TUNIS: Libya’s National Oil Corporation (NOC) lifted force majeure on all oil exports on Friday as a first tanker loaded at Es Sider after a half-year blockade by eastern forces, but said technical problems caused by the shutdown would keep output low.
“The increase in production will take a long time due to the significant damage to reservoirs and infrastructure caused by the illegal blockade imposed on January 17,” NOC said in a statement.
A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker, chartered by Vitol, which two sources at Es Sider port said had docked and started loading on Friday morning.
The blockade, which was imposed by forces in eastern Libya loyal to Khalifa Haftar’s Libyan National Army (LNA), has cost the country $6.5 billion in lost export revenue, NOC said.
“Our infrastructure has suffered lasting damage, and our focus now must be on maintenance and securing a budget for the work to be done,” NOC chairman Mustafa Sanalla said in the statement.
Control over Libya’s oil infrastructure, the richest prize for competing forces in the country, and access to revenues, has become an ever-more significant factor in the civil war.
The internationally recognized Government of National Accord, supported by Turkey, has recently pushed back the LNA, backed by the United Arab Emirates, Russia and Egypt, from the environs of Tripoli and pushed toward Sirte, near the main oil terminals.