Abu Dhabi Islamic Bank (ADIB) – Egypt is teaming up with four banks to arrange 900 million Egyptian pounds ($49.6 million) for Saudi Binladin Group’s affiliate Al Marasem International for Development Company.
The banks will provide the finance in form of a bridge loan, to be a long-term loan later, designed for Al Marasem’s needs to fund its projects in New Cairo, senior banking sources with knowledge told Amwal Al Ghad on Tuesday.
Al Marasem already has two land plots in the Fifth Settlement district in New Cairo, on spaces of 115 and 40 feddans, respectively, the sources said. The company plans to launch comprehensive urban projects in the two lands, they added.
Saudi Binladin Group, the kingdom’s biggest construction conglomerate, was on the brink of a financial crisis in 2015 as low oil prices forced the government – its chief customer – to cancel or suspend projects and delay payments. It was then barred from receiving new state contracts altogether after one of its cranes toppled into Mecca’s Grand Mosque during a storm, killing 107 people.
Facing a severe cash squeeze, the Saudi company was forced to halt work at a string of projects and lay off thousands of staffs.
But later in 2016, the Saudi government has lift ban on Binladin Group, allowing it once again to submit tenders for government construction projects in a royal decree.
