The Saudi Binladin Group (SBG) has secured a SAR8.5bn ($2.27bn) financing facility from a consortium of banks led by the Gulf International Bank (GIB) for the expansion and development of King Abdulaziz International Airport in Jeddah, Saudi Arabia.
GIB was initially mandated to arrange a SAR6bn syndicated loan facility for SBG, which was later raised to SAR8.5bn to meet SBG's additional financing requirements.
SBG had won the SAR27.1bn contract in 2010 from the General Authority of Civil Aviation, Ministry of Defense and Aviation and the Inspectorate General of Saudi Arabia to develop the airport.
"SBG has an outstanding track record in executing large value contracts in the GCC and beyond," said GIB's CEO Yahya Alyahya. "GIB and the other financial institutions are pleased to have supported SBG for this very important project, and look forward to continue their important role in financing major contracts in the GCC."
The General Authority of Civil Aviation, owner of King Abdulaziz International Airport, will expand the airport's capacity over three phases by 2035.
The first phase includes a new passenger terminal, a cargo village, high-speed rail links to Mecca and Medina, and a new air traffic control complex and tower.
GIB is a leading bank in the Middle East and is owned by the six Gulf Cooperation Council governments, with the Public Investment Fund of Saudi Arabia holding a majority stake of 97.2%.