Jabal Omar signs SAR 1 bln facility agreement with Bank Albilad

Logo of Jabal Omar Development Co.

Jabal Omar Development Co. signed on Dec. 9 a facilities agreement with Bank Albilad worth SAR 1 billion, the company said in a bourse statement. 

The facilities will be repaid through equal semi-annual instalments over the loan term, in addition to a final payment. 

The financing period is eight years with a grace period of 12 months. 

The company will use the facilities to fully repay SAR 643.7 million outstanding facilities to Bank Albilad. The remaining balance will be used for repaying certain expensive liabilities and financing general corporate expenses. 

The guarantees offered for the financing includes a pledge of real estate assets in the Jabal Omar project. 

The agreement is an integral component of the company's capital structure optimization plan, which aims to improve its funding structure and reduce its financing costs