Saudi Firms Backed by Billionaires in Probe Have $2 Billion Debt

  • Kingdom, Al Tayyar drop as corruption purge roils Saudi stocks
  • Regulator said to ask banks to freeze accounts of individuals

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Three Saudi companies, whose billionaire backers are caught up in an anti-corruption crackdown, have at least $2.1 billion of debt maturing over the next three years, according to data complied by Bloomberg.

Among those being held are Prince Alwaleed bin Talal whose $19 billion fortune has already slumped by about $2 billion this week. Also being detained are Nasser Al Tayyar who amassed a fortune that’s tied to Al Tayyar Travel Group Holding Co., one of Saudi Arabia’s largest travel agencies, and Bakr Binladin, the scion of one of the kingdom’s biggest construction firms.

Saudi Arabia said it has only frozen the bank accounts of individuals and not those of the companies they own or manage, as the kingdom seeks to ease tension among global investors over the crackdown.

NOTE: The companies may have debt that isn’t captured by Bloomberg.

Kingdom Holding

  • The company, which is 95% owned by Alwaleed, holds stakes in Twitter Inc. and Citigroup Inc.
  • Has $975 million of loans maturing in the next three years.
  • The investment firm borrowed $410 million from banks including Bank of America Corp. and Deutsche Bank AG last July for refinancing purposes. It also raised a $340 million loan in 2016. Citigroup was the global coordinator for both loans that mature in September 2019.
  • Kingdom took a $225 million loan in 2015 with a five-year maturity from banks. Credit Agricole CIB, Natixis SA and Societe Generale SA were lead arrangers.
  • Shares have dropped 21% since the crackdown started.
  • Kingdom said it has the government’s support and the company enjoys "a solid financial position underpinned by a prudent and conservative funding plan leveraging strategic relationships with over fifteen local, regional and international banks."

Al Tayyar Travel Group

  • Nasser Al Tayyar that’s tied to one of Saudi Arabia’s largest travel agencies.
  • The company borrowed $328 million in an amortizing loan in 2015 from Arab National Bank. It has $262.4 million outstanding as of August.
  • Shares have dropped about 27% over the past four days.
  • The company said on Monday its operations are continuing, and that it’s safeguarding the interests of customers and shareholders.

Saudi Binladin Group

  • Bakr Binladin is the brother of Osama Bin Laden and heads one of the kingdom’s largest construction companies.
  • The privately-held company had revenue of $3 billion in 2016, and ownership is split among more than 20 descendants, according to Orbis, a database of company information published by Bureau van Dijk.
  • It raised $634.6 million in 2014 to finance projects. The loan matures this month. Lenders including Abu Dhabi Islamic Bank, National Bank of Abu Dhabi and Samba Capital helped arrange the loan.
  • It also borrowed $159 million in 2014 from regional banks. The project finance loan matures in 2018.

— With assistance by Matthew Martin, Claudia Maedler, and Brandon Kochkodin

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