Saudi Arabia’s listed developer Jabal Omar Development has secured a deal to restructure its 4.7 billion-riyal ($1.253 billion) loan that was taken six years ago. 

The company, which is developing a complex in Saudi’s holy city of Mecca, availed the loan with Saudi British Bank (SABB) and Samba Financial Group, now Saudi National Bank (SNB), in May 2015. 

Under the new agreement, the loan’s final maturity has been extended by three years to 2030, with an option to extend by another three years. The total financing limit has also increased by around 26 percent to 5.9 billion riyals, the company said in a statement to the Saudi Stock Exchange (Tadawul) on Tuesday. 

The tenor of the original loan was 12 years from the date of signing the agreement in 2015. 

The developer had sought for a restructuring of the loan to secure more funding for its project in Mecca. The company also wanted to improve the commercial terms of the facility so that they will be “aligned” with its cash flows and capital structure. 

The company incurred net losses of 74.7 million riyals in the first half of 2021, down 89 percent from the 691.3 million riyals in losses recorded in the same period last year. 

Jabal Omar’s development project in Mecca is expected to feature 40 towers once fully completed. The site is envisioned to attract 100,000 visitors during the haj season. 

(Writing by Cleofe Maceda; editing by Seban Scaria ) 

Cleeofe.maceda@refinitiv.com 

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