Binladin Group said to receive $2.9 bln government loan

Saudi Arabia's finance ministry has provided Saudi Binladin Group (SBG) with loans of around SAR 11 billion ($2.9 billion) to help turnaround the construction giant, Reuters reported, citing people familiar with the matter.

The funding will be used to prioritize work on projects deemed key to the government such as King Abdullah Financial District in Riyadh and expanding facilities and surrounding infrastructure in Makkah and Madinah.

The cash infusion will also help the contractor pay outstanding staff wages and bank creditors.

Further cash transfers from the government were possible in the near future, the report added.

In March, Reuters reported that the Saudi government is expected to take a 35 percent stake in SBG.