Jabal Omar picks Rajhi for Mecca project financing
Riyadh, May 24, 2009
Saudi Jabal Omar Development Company said on Sunday it had appointed an affiliate of the world's largest Islamic lender, Al-Rajhi Bank, to help it secure financing worth a previously estimated $3.31 billion.
Al-Rajhi Financial Services Company is to provide 'financial advisory and arrange the necessary financing through diverse Islamic Sharia-compliant instruments' for the Jabal Omar project in the holy city of Mecca, Jabal Omar said in a statement posted on the bourse's website.
The statement did not give further details. Jabal Omar said in April that its previous financial adviser, Saudi investment bank Jadwa Investment Co, had been unable to secure 12.4 billion riyals ($3.31 billion) to finance the project within agreed deadlines.
Jabal Omar said it would present its shareholders on June 10 with a proposal allowing the firm to issue sukuk, or Islamic bonds.
Jadwa Investment said in April it may seek damages over the cancellation. It had been meant to secure long-term financing through the issue of a sukuk as well as short-term financing.-Reuters
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