"The loan will be repaid over eight years, two of
which are a grace period," according to a statement issued via the bourse.
Jabal Omar is in charge of developing an area near the
Grand Mosque in Makkah. The project will include luxury hotels, shops and
houses.
The developer sought shareholder approval last year for a
change in its basic charter that would allow it to take on more debt.
In May Jabal Omar's shareholders approved a 38.4 percent
capital increase to SR9.3 billion through a rights issue, of which part of the
proceeds went to pay back a SR350 million bridge loan from Al-Rajhi Bank.
The prospectus posted on the Capital Market Authority
website in May said the largest part of the cost of the first phase of its
project will be financed through a syndicated loan from local banks, worth up
to SR5 billion.
Last year, in October, the firm secured a SR1.35 billion bridge
loan from local banks and said it would finance it through the SR5 billion syndicated
loan.
