Saudi Binladin Group (SBG) is negotiating with banks an extension of up to two years on a 10 billion riyal ($2.7 billion) Islamic credit facility used to pay for building work at the kingdom’s Grand Mosque in Mecca after delays to the project, banking sources said.
Contractors in Saudi Arabia have had to deal with delays to projects and late payment after the government trimmed spending to adjust to the impact of lower oil prices.
Banking sources said SBG had asked for an extension until the end of 2019 for the syndicated facility, used as working capital to fund the expansion of the Grand Mosque, which houses the Kaaba, which Muslims face towards when praying.
The sources said the project had been delayed to allow the government to defer some of its spending plans, as well as because of changes to the project’s scope and to some of its contractors.
Saudi Binladin Group and the Ministry of Finance were not immediately available for comment.
The facility, which includes letters of credit and loans, had been due to mature at the end of 2017 to coincide with the project’s completion. But SBG, which is believed to have used less than half of the 10 billion riyals, asked for the funding to be extended until the end of 2019, to match a new time frame for the project’s completion, the sources said. More info
By Reuters http://ameinfo.com/