Jabal Omar refinances SAR 2B facilities with Al Rajhi Bank

Jabal Omar Development Co. (JODC) signed on Aug. 18 a Murabaha financing agreement worth SAR 2 billion with Al Rajhi Bank to refinance existing facilities at improved terms, according to a statement to Tadawul.

The financing facility has a tenor of five years, extendable for an additional three years. Additionally, two properties from the Jabal Omar project were mortgaged as collateral against the financing.

The agreement included no related parties, the statement added.

The new facilities will help improve the repayment schedule and enhance cash flow sustainability, in addition to optimizing the structure of collateral against loans — representing an important step within the company’s strategy to strengthen its debt profile.