Jabal Omar to raise $450m in rights issue
Riyadh, October 24, 2009
Saudi property developer Jabal Omar Development plans to raise around $447.6 million through a rights issue, which would finance about 14 per cent of its sole project in the holy city of Makkah.
'The issue premium will be set later,' it said in a statement, adding that its board had recommended the SR1.68 billion ($447.6 million) capital increase.
The company has hired the world's largest Islamic lender Al-Rajhi Bank to provide 'financial advise and arrange the necessary financing through diverse Islamic sharia-compliant instruments' for its project in Makkah.
Jabal Omar said in April that its previous financial adviser, Saudi investment bank Jadwa Investment, was unable to secure SR12.4 billion ($3.31 billion) to finance the project within agreed deadlines.
It later said it would present its shareholders on June 10 with a proposal allowing the firm to issue sukuk, or Islamic bonds. – Reuters