Leading Saudi developer Jabal Omar Development Company said it has signed an Islamic term finance agreement with kingdom's top banks - Saudi British Bank (SABB) and Saudi National Bank (formerly Samba Financial Group) - in bid to restructure its SR4.7 billion ($1.25 billion) loan that was taken six years ago. 

 

As per the new agreement, the loan’s final maturity has been extended by three years to 2030, with an option to extend by another three years, said the company in its filing to the Saudi bourse Tadawul. 

 

Jabal Omar said the tenor of the original loan was 12 years from the date of signing the agreement in 2015. The total financing limit has also increased by around 26 per cent to SR5.9 billion, it stated. 

 

The Saudi developer operates the Jabal Omar complex of hotels and residential and commercial property within walking distance of Grand Mosque in Makkah. It was hard-hit when the pandemic reduced pilgrimages.

 

TradeArabia had recently reported that the company had sold a prime parcel of land within its Makkah project via a public auction for SR517 million ($138 million) in bid to boost its capital structure. The 2,600.32 sq m plot was sold at a rate of SR199,000 per sq m.

 

The Saudi developer pointed out that the restructuring was needed to complete Phases 2 & 4 of its Jabal Omar project in Makkah and improve the terms in line with its cash flows and capital structure.

 

This comes as part of the company’s turnaround plan to improve its capital structure, decrease its financial obligations and accelerate the completion of the project’s phases.-TradeArabia News Service