Saudi developer of pilgrimage sites Jabal Omar restructures loan

DUBAI (Reuters) – Jabal Omar Development Company, one of Saudi Arabia’s largest real estate developers, said on Tuesday it had signed an agreement to restructure a 4.7 billion riyal ($ 1.25 billion) loan granted in 2015, in particular by increasing it and extending its maturity.

FILE PHOTO: A pilgrim bids farewell to the Tawaf around the holy Kaaba in the Grand Mosque after completing his extended Haj, “Haj Al Kabeer”, during the annual Haj pilgrimage to the holy city of Mecca, Arabia Arabia, July 22, 2021. REUTERS / Ahmed Yosri / File Photo

The facility, provided by Saudi British Bank (SABB) and Samba Financial Group, will have a draw limit of 5.9 billion riyals, about a quarter more than its original size and repayments will begin after a grace period. three-year-old, Jabal Omar said in an exchange brief.

The company, which has recorded eight consecutive quarterly losses before making a profit of 270.6 million riyals in the quarter ended in June, is developing projects of “strategic importance”, the Saudi finance ministry told Reuters.

Samba is now the Saudi National Bank (SNB) after its merger with the National Commercial Bank. Jabal Omar’s Chairman of the Board, Saeed Alghamdi, is the CEO of SNB.

The loan maturity will be extended for three years until 2030, with an option for another three-year extension if the preconditions are met.

The initial agreement, signed in March 2015, was for 12 years.

The company said the restructuring is necessary to complete phases 2 and 4 of the Jabal Omar project and improve conditions in line with the company’s cash flow and capital structure.

He indicated that there was an option to reduce the future rate of the loan based on progress made on phases and in deleveraging.

The company operates the complex of Jabal Omar hotels and residential and commercial properties within walking distance of the Grand Mosque in the Muslim holy city of Mecca. He was hit hard when the pandemic reduced pilgrimages.

The development of religious pilgrimages, which before the pandemic attracted millions of Muslims around the world each year, is part of the government’s Vision 2030 to diversify the economy and reduce dependence on oil.

In March, the company secured 1.6 billion riyals in financing backed by a guarantee from the Ministry of Finance.

($ 1 = 3.7503 riyals)

Reporting by Yousef Saba; edited by Barbara Lewis

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