FINANCIAL NEWS

Jordan- Saraya Aqaba to boost capital by $300m

09 Jun 2010

(MENAFN) Jordan-based Saraya Aqaba announced that its board has approved a plan to raise $300 million in new equity from shareholders to enable the firm to complete a $1 billion Red Sea resort development, Reuters reported.

Banking executives say the capital hike will enable the firm to get further financing to complete the mixed-use leisure and tourism resort located on a 634,000 square meter site on the northern tip of the Gulf of Aqaba, adjoining Israel’s Eilat resort.

Banks have for months been reluctant to extend a syndicated loan to Saraya Aqaba until its leading shareholders invested more money in the project that was due for completion in 2009, sources said.

The firm has already signed deals with Starwood Hotels and Resorts World Wide Inc and the UAE’s Jumeira to manage around 1,100 hotel rooms in the resort that features hotels, beachfront villas, a convention centre, an old souk and a wharf promenade.

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