Binladin EGM OKs debt conversion deal with Ministry of Finance

Logo of Binladin International Holding Group. The Ministry of Finance will now hold an 86.38% stake in the group

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

As a result, MoF 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 MoF with several local and international banks, worth approximately SAR 23.3 billion.

This followed MoF’s earlier announcement of measures to support BIHG in stabilizing its financial structure through coordinated arrangements to settle banks’ cash entitlements.

BIHG was established in March 2019 to oversee operations of the group’s subsidiaries, including Saudi Binladin Co.