Jabal Omar restructures SABB, SNB loans to finalize project’s 2nd, 4th phases

Logo of Jabal Omar Development Co.

Jabal Omar Development Co. (JODC) signed on Oct. 4, an agreement to restructure the terms of Islamic financing provided by Saudi British Bank (SABB) and Samba Financial Group (currently Saudi National Bank (SNB)) in accordance with the agreement concluded in May 2015.

According to the company statement on Tadawul, the restructuring included the re-availability of an amount of SAR 1.2 billion from the allowed financing limit and extending the maturity for an additional three years from the original financing maturity with the option to extend for another three years, subject to specific conditions.

The terms also included a repayment schedule based on cash flows to complete and operate the project, the start of financing repayment after the lapse of three years, and the gradual reduction of the financing profit margin based on the progress of the completion of the second and fourth phases of the project and the repayment of the financing.

The company clarified that the Islamic financing was restructured to provide the necessary financing to complete the second and fourth phases of the Jabal Omar project and obtain better terms commensurate with the company's cash flows and capital structure.

The total value of financing after the restructuring was raised to SAR 5.9 billion from SAR 4.7 billion.

The financing period after the restructuring was amended from 12 years (from the agreement signing in May 2015) to nine years (from the agreement signing in October 2021), with the option to extend it for an additional three years according to specific conditions.

The company indicated that there is a related party, as JODC’s Chairman, Saeed Al-Ghamdi, is the Managing Director and CEO of SNB.

The company will present this agreement to the coming general assembly for approval.

The financing restructuring comes as part of the transformation plan to improve the capital structure, reduce financing costs, and advance the completion of the project's phases.