Kingdom’s largest construction company ties up third short-term Islamic bond since 2010
Saudi Arabia’s largest construction company, Saudi Binladin Group (SBG) has completed the issuance of a $267m short-term Islamic bond, its third since 2010.
Last year, SBG secured $2.3bn of funding from a syndicate of local and international banks for the expansion and development of King Abdulaziz International Airport in Jeddah. The company did not provide details on the purpose of the issuance.
In August 2011, the company signed a $1bn agreement with Kingdom Holding Company (KHC), chaired by Prince Alwaleed bin Talal, for building the 1-km tall Kingdom Tower, the centrepiece and first phase of the $20bn Kingdom City development in Jeddah.
The tower was initially planned to stand 1.6km high, however, the building was scaled down to now stand 1-km tall after soil testing in the area revealed results that doubted whether the location could support a building of that height.
Adrian Smith + Gordon Gill (AS + GG) have been officially announced as the architects for the tower. The 5,202,570m2 Kingdom City project will be built in three phases and will host both commercial and residential developments including homes, hotels, and offices.