BinDawood Secures SAR 542M for Estonia Dairy Deal

BinDawood Holding has secured SAR 542 million in Sharia-compliant Murabaha credit facilities from two Gulf banks to finance the acquisition of dairy production assets in Estonia, the company confirmed through an official disclosure. The financing runs through the company's wholly owned subsidiary, JUUST & JUBN OÜ.

The Murabaha agreement was signed on 25 August 2026 and carries a tenor of between three and five years, with no bank guarantees provided. The facilities are earmarked to fund the purchase of dairy production assets belonging to AS E-Piim Tootmine.

The winning auction bid for the Estonian assets stands at EUR 135.25 million, equivalent to about SAR 585.85 million. The deal covers plants and related real estate, machinery, operating assets, contractual rights, and equity stakes in associated entities in Paide and Põltsamaa. Importantly, BinDawood is acquiring industrial assets and related technologies only — not the corporate entity — and will not assume the existing liabilities or debt of the bankrupt Estonian company.

The transaction remains subject to the fulfillment of auction and bid conditions, as well as regulatory approvals in the relevant jurisdictions. Completion will follow once these conditions and approvals are met.

Part of a broader expansion plan

The credit facilities form part of BinDawood Holding's wider investment and expansion strategy, which includes planned investments of around SAR 1.5 billion, largely focused inside Saudi Arabia. The Estonian acquisition marks the group's move into international industrial expansion in the dairy sector.

No public details have been disclosed on fees, profit rates, or the repayment schedule beyond the total facility amount and its tenor range. For residents, the move signals continued growth by a major Saudi retail and food group, with potential long-term effects on dairy sourcing and supply.

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