Saudi Arabia’s Jabal Omar Development Company (JODC), one of the largest listed property developers in the country, has announced the restructuring of the 3 billion riyals ($800 million) loan it borrowed from the government about 10 years ago.
In a bourse filing on Sunday, JODC said it has already obtained the approval to proceed with the restructuring of the loan granted by the Ministry of Finance (MoF) in 2011.
Following the approval, the company will now convert 1.5 billion riyals of the loan to a new Shariah-compliant subordinated perpetual instrument, and receive a maturity extension for the remainder of the loan to March 31, 2031, the company said in a disclosure to the Saudi Stock Exchange (Tadawul).
The company said the transaction involves a related party, as board member Thalb Al Shamrani is a senior executive in the Ministry of Finance.
Last March 2020, the company revealed it had been granted the go-ahead to extend the maturity of the existing loan and provide support to restructure its outstanding balances.
Earlier this month,JODCannounced a loss of 270 million riyals for the third quarter of 2021.
(Writing by Imogen Lillywhite; editing by Cleofe Maceda)
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