Bloomberg/Luke MacGregor

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Rothschild, Moelis vie for $15 billion Saudi Binladin debt revamp

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The boutique banks made pitches to Saudi Binladin Group last month for what would be one of the Middle East’s biggest debt revamps.

Thursday 03, October 2019

Rothschild & Co. and Moelis & Co. have been shortlisted to advise on restructuring about $15 billion of debt at Saudi Arabia’s biggest construction firm, reported Bloomberg.

Ken Moelis, the founder and Chief Executive Officer of the eponymous investment bank, travelled to the Kingdom to lead the process.

Goldman Sachs Group is said to have also pitched for an advisory role, but the lender not been shortlisted. No final decisions have been made and Jeddah-based Binladin may decide not to hire an adviser.

Binladin—for decades Saudi Arabia’s go-to developer for mega-projects such as airports and holy sites in Mecca and Medina—is restructuring debt after the Kingdom delayed payments to contractors following the drop-in oil prices.

The government took about a 37 per cent stake in the firm from the Binladin family to settle outstanding dues after Bakr Binladin was swept up in a corruption crackdown in November 2017.

The potential restructuring follows state-owned Dubai World Corporation’s $23.5 billion debt overhaul and property developer Nakheel’s $10.5 billion workout in 2009. Saudi Arabia’s Ahmad Hamad Algosaibi & Brothers is also in talks to restructure about $6 billion of debt.

Binladin Group last month hired a new Managing Director, Abdullah Mohammed Nour Al Rehaimi, to help its business recover from the downturn.

TAGS : Rothschild & Co. , Moelis & Co., Goldman Sachs Group, Saudi Binladin , Dubai World Corporation, Ahmad Hamad Algosaibi & Brothers, Nakheel

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