Saudi Arabia’s Jabal Omar Development Company (JODC), which is developing a hotel mega project close to the Grand Mosque in Makkah, has signed a one-billion-riyal ($266.67 million) credit facility with Bank Abilad. 

In a statement to the Saudi Stock Exchange (Tadawul), the company said the funds will be used for the immediate repayment of 643.7 million riyals in principal and secured interest on an existing loan from the bank. 

The remainder will be used to “extinguish certain expensive liabilities and finance general corporate expenses”, the statement said. 

The eight-year loan has a one-year grace period and will be repaid in equal semi-annual instalments. 

The agreement is part of a capital structure optimisation plan, which aims to improve the company’s funding structure and reduce financing costs, the statement concluded. 

(Reporting by Imogen Lillywhite; editing by Cleofe Maceda) 

 

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