Leading Saudi developer Jabal Omar has announced that it has secured a SR1 billion ($266.3 million) loan from Bank Abilad as part of its capital structure optimisation plan. These funds will be used for the immediate repayment of SR643.7 million in principal. 

 

Saudi real estate group Jabal Omar Development Company (JODC) has announced that it has secured credit facility worth SR1 billion ($266.3 million) from Bank Abilad as part of capital structure optimisation plan. 

 

The funds will be used for the immediate repayment of SR643.7 million in principal and secured interest on an existing loan from the bank, stated JODC in its filing to the Saudi Stock Exchange (Tadawul).

 

The Saudi group was given the eight-year loan on guarantee over certain real estate assets with a one-year grace period. 

 

The agreement is part of a capital structure optimisation plan, which aims to improve the company’s funding structure and reduce financing costs, said the statement. 

 

The loan will be repaid in equal semi-annual instalments, it added.-TradeArabia News Service