Binladin EGM OKs debt conversion deal with Ministry of Finance

Binladin International Holding Group’s shareholders approved the board’s recommendation to increase capital by issuing shares to the Ministry of Finance to settle part of the company’s outstanding debts during the extraordinary general meeting (EGM) held on Dec. 28.

As a result of the conversion, the Ministry of Finance will hold an 86.38% stake in the group, Al-Sharq News reported, citing a company statement.

The new ownership structure is expected to strengthen its financial position and support growth and expansion plans as part of a transformation program, which includes operational restructuring, enhanced governance, and maximizing the value of its investment portfolio.

According to data available with Argaam, the National Debt Management Center (NDMC) had announced in October 2024 the completion of a syndicated loan arrangement for the Ministry of Finance with several local and international banks, totaling approximately SAR 23.3 billion.

This follows the Ministry of Finance’s earlier announcement of measures to support the Binladin Group in stabilizing its financial structure through coordinated arrangements to settle banks’ cash entitlements.

Binladin International Holding was established in March 2019 to manage the operations of its subsidiaries, including Saudi Binladin Co.