Logo of Jabal Omar Development Co.
Jabal Omar Development Co. said it received a letter from the Ministry of Finance approving the conversion of the SAR 1.5 billion existing loan out of total SAR 3 billion, into a new Sharia-compliant, subordinated perpetual instrument, in accordance with the agreed terms.
In a statement to Tadawul today, Nov. 21, the developer said the maturity of the remaining SAR 1.5 billion loan was also extended to March 31, 2031, to be repaid in a bullet repayment.
The approval also included waiver of the entire cumulative interest of SAR 440 million until Nov. 14, 2021.
The ministry also approved reducing the banking commission on the restructured amount of the SAR 1.5 billion loan, and the capitalization of all banking commissions due between Nov. 15, 2021, and Dec. 31, 2025.
The ministry also gave the go-ahead for releasing mortgage of the DoubleTree Hotel land plot, and replacing it with the mortgage of other land plots having an equal value in the project, under the agreed terms.
The existing SAR 3 billion loan was originally scheduled to mature on March 31, 2022, the developer said, adding that no guarantees or additional security was offered for the restructuring process.
The ministry’s approval is conditional on updating the relevant loan agreements, it added.
The rescheduling comes in order to support Jabal Omar’s capital structure optimization program, reduction of annual financial charges, improve the company’s capitalization and stabilization of its financial position to enable completion of the outstanding phases of the masterplan.
The transaction involves a related party as board member Thalb Al-Shamrani is a senior executive in the Ministry of Finance, the statement noted.
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