FINANCIAL NEWS

Saudi Jabal Omar to obtain a USD800m loan from govt

15 Dec 2011

(MENAFN) Jabal Omar, the Saudi developer, said that it inked a USD800 million loan deal with the Finance Ministry to finish some of the company’s projects in Makkah, reported Reuters.

The firm added that its shareholders approved a 38.4 percent capital raise to USD2.4 billion through a rights issue, of which part of the proceeds went to pay back a USD93 million bridge loan from a local commercial bank.

It also said that the largest part of the cost of the first phase of the project would be financed through a syndicated USD1.3 billion loan from local banks.

It is worth noting that the project includes developing an area near the Grand Mosque in Makkah that would contain luxury hotels, shops and houses.

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