The Saudi Binladin Group (SBG) has secured a $2.3 billion funding contract with the Gulf International Bank (GIB), to finance the expansion and development of King Abdulaziz International Airport (KAIA) in Jeddah.
SBG, the Saudi industrial conglomerate, won the contract worth $7.2 billion to develop and expand the gateway last year.
The contract is for the first phase of a development project that will raise the airport's annual capacity to 30 million passengers.
A new 400,000sqm crescent shaped passenger terminal, 450,000 tonnes per annum capacity cargo complex, new ATC tower and railway station are the key projects of the planned revamp of the gateway.
Initially, GIB was to arrange a $1.6 billion syndicated facility for SBG, but this was subsequently raised to $2.3 billion to “accommodate the additional financing requirements of SBG”.
The financial institutions that participated in the syndicated facilities include Abu Dhabi Commercial Bank, Maybank (Malaysia), Samba, Union National Bank, Ahli United Bank, Emirates NBD, Arab National Bank, BNP Paribas, Arab Banking Corporation, Arab Bank plc and the Bank of Bahrain and Kuwait.
Dr. Yahya Alyahya, CEO of GIB, said: “SBG has an outstanding track record in executing large value contracts in the Gulf Cooperation Council (GCC) and beyond.
“GIB and the other financial institutions present today 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.”
GIB is owned by the six GCC governments, with the Public Investment Fund of Saudi Arabia holding a majority stake of 97.2%.
Yahia Binladin, SBG's vice chairman added: “SBG is proud to have been selected by GACA to execute this prestigious project, and we compliment GIB and the banks for supporting SBG towards timely execution of this important contract.”