Saudi Property Mogul Sues Barclays for $10B

MANHATTAN (CN) – Barclays betrayed a client by settling an old lawsuit against Saudi Arabia for the first banking license granted to a Western institution in decades, Mideast real estate giant Jadawel International claims in court.
Owned by Jeddah-based billionaire Mohamed Bin Issa Al Jaber, Jadawel International and its corporate parent MBI International says the seeds to its complaint filed Tuesday in New York County Supreme Court were sown decades ago.
It began with two residential compounds Jadawel built in Saudia Arabia in the early 1990s “to house hundreds of employees of two United States defense contractors working in Saudi Arabia,” according to the complaint.
With Jadawel facing loan obligations related to its construction of the compounds, the developer created a financing vehicle to collect $1.4 billion in lease payments from the Saudi government in New York banks, according to the compliant.
Jadawel says Barclays took “a lead interest” in the transaction and ultimately headed the debt-financing transaction.
Barclays “aggressively solicited” Jadawel’s business with a $450 bridge loan and led a syndicate of banks in another $900 million loan, the developer says.

Read on.

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