Jabal Omar Development Company

#Saudi developer Jabal Omar to raise 4b riyals via #sukuk

Saudi Arabia’s Jabal Omar Development plans to raise 4 billion riyals (Dh3.91 billion or $1.06 billion) with local currency sukuk issues. Bank Al Bilad has been hired to arrange the fund-raising, but other banks are likely to have leading roles too. The developer’s flagship project, Jabal Omar, is within walking distance of the Holy Mosque in Makkah. It includes commercial malls, residential units and hotels over an area of 230,000 square metres. Saudi Arabia’s real estate sector was hit hard last year, with prices declining 8.7%, as a result of the government’s austerity measures after a slump in international oil prices. Jabal Omar missed in January last year the first repayment, worth 650 million riyals. It amended the terms of the loan in February 2016 to postpone the date, the first payment on the facility is now due in 2019 and the loan will mature in 2024. Jabal Omar has also borrowed 4 billion riyals in February 2015, then 8 billion riyals in September 2015. It is not clear whether the planned sukuk would be used as new funding or to refinance some of the company’s existing debt.

SR3.4bn contract signed for Jabal Omar project

Jabal Omar Development Company signed a SR3.4 billion contract with a construction company on Tuesday to carry out the vital project.
The project was previously scheduled to be completed in 2011 but was delayed due to the global economic recession.

Saudi Arabia: JODC receives SR1.35b funding

Jabal Omar Development Company the leading planner and developer of the Jabal Omar mountain area, has received agreements for bridge funding collectively worth SR1.35 billion from five national banks, namely Al Rajhi Bank, National Commercial Bank, Bank Al Jazira, Saudi British Bank (SABB) and Saudi Hollandi Bank.
The bridge loan provides immediate cash flow that would serve as a working capital until the round of funding goes through and acts to bridge the gap between times when financing is needed.
The Jabal Omar development in Makkah project calls for construction of residential and commercial center in area close to the Grand Mosque in Makkah. The master plan of development covers 230,000 square meters.
The development consists of 39 commercial and residential towers, notable of which is the 50-storey Twin Tower.
The project has led other developers to follow our lead in improving and urbanizing the central area surrounding the Mosque.

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