One of Saudi Arabia’s largest property developers, Jabal Omar Development Company, has secured a deal to restructure a $1.25 billion loan borrowed six years ago.
The developer had taken the loan from Saudi British Bank (SABB) and Samba Financial Group, now Saudi National Bank (SNB), in 2015. The firm is developing a complex in the holy city of Mecca.
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. The total financing limit has also increased by around 26 percent to 5.9 billion riyals, the company said in a statement to the Saudi Stock Exchange (Tadawul) on Tuesday.
The developer had sought for a restructuring of the loan to secure more funding for its project in Mecca. The company also wanted to improve the commercial terms of the facility so that they will be “aligned” with its cash flows and capital structure.
The company incurred net losses of 74.7 million riyals in the first half of 2021, down 89 percent from the 691.3 million riyals in losses recorded in the same period last year.
Jabal Omar’s development project in Mecca is expected to feature 40 towers once fully completed. The site is envisioned to attract 100,000 visitors during the haj season.