Jabal Omar rights issue to help repay $93m loan
Riyadh, May 30, 2011
Saudi developer Jabal Omar will use part of the proceeds from a rights issue to pay back a SR350 million ($93.33 million) bridge loan from Al-Rajhi Bank, it said in a prospectus.
Jabal Omar said on Sunday its shareholders approved a 38.4 per cent capital increase to 9.3 billion riyals ($2.48 billion) through a rights issue.
The prospectus, posted on the Capital Markets Authority website, said the proceeds would also be used to finish the first phase and start the second phase of building a project close to the Grand Mosque in Makkah.
It said the rights issue dates would be from June 6 to June 15. No further details of the Al-Rajhi loan was provided in the prospectus.
The prospectus also said the largest part of the cost of the first phase will be financed through a syndicated loan from local banks worth up to SR5 billion.
In October, the developer secured a SR1.35 billion bridge loan from local banks and said it would finance it through the SR5 billion syndicated loan.
The project in Makkah will include luxury hotels, shops and houses. The developer sought shareholders' approval last year for a change in its basic charter that would allow it to borrow more.
Last week, Saudi developer Emaar Economic City received a SR5 billion loan ($1.33 billion) from the kingdom's finance ministry to speed up construction of a project.
Jabal Omar's shares were down 1.6 per cent at 1011 GMT, underperforming the kingdom's bourse which eased 0.4 percent.-Reuters
More Construction & Real Estate Stories
- Emaar rules out plans for new tall tower
- Barwa net profit surges 27.3pc
- RAK Properties adds new villas to Flamingo project
- Saudi launches housing scheme to ease shortage
- R&M wins Oman residential project contract
- Asian skyscraper prices tower over rest of the world
- Tamleek opens new office in Dubai
- $29m allocated for Bahrain drainage projects
- Indian group plans $300m Bahrain Bay investment
- Drake and Scull awards key supply contract
- FCC wins $702m Doha metro line contract
- SPF Realty sees Dubai project success
- Abu Dhabi set for big property show
- Aldar working on $1.5bn UAE housing projects
- Gulf Finance House to start $3bn Tunisia project
- Abu Dhabi to see 10pc surge in new homes
- Saudi construction sector booming on new contracts
- Emaar offers 330 apartments in MBR City
- Dubai Design District sees big demand
- HUGE DEAL: Arabtec inks $40bn Egypt housing project
- Galfar ex-CEO gets 15 years' jail over bribes
- $32m BFH car park work underway
- Bahrain awards $5.8m project tenders
- Spinneys to set up distribution centre at Kizad
- Dubai unveils $300m hitech 'green' city project
- Deyaar plans $245m Dubai complex
- IFA unveils $272m Dubai mixed-use project
- CBRE tops Fortune’s most admired firms list
- Kuwait's real estate sales hit $1.1bn in Jan
- Dubai RTA awards $27m roads contract