Published On: Sun, May 22nd, 2016

Saudi Binladin Group secures $667mn loan

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Saudi BinLadin Group (SBG) has reportedly bolstered its cash flow after securing a $666.5m (SAR2.5bn) loan from local banks using land as collateral.Binladin

Arab National Bank and Saudi British Bank are said to be providing the loan, Reuters reported citing sources familiar with the matter.

One of Saudi Arabia’s largest construction contractors is expected to use the funds to cover redundancy costs for layed off workers and unpaid salaries, the newswire said.

SBG is in the process of cutting its workforce by as many as 80,000 as it struggles to deal with lower oil prices and a ban on bidding for new contracts imposed last September when a crane collapsed in Mecca killing 107 people.

The ban has recently been lifted and the company is free to bid for new work again, according to reports.

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