Jabal Omar inks SAR 4 bln credit deal with NCB

Jabal Omar Development Company signed on Monday a SAR​4 billion Islamic credit agreement with the National Commercial Bank (NCB)

The ​deal is effective 30 days after the signing date and is a refinancing agreement to repay the syndicated loan obtained from six banks, the company said in a statement to Tadawul, Saudi Arabia’s bourse.

The 15-year credit deal includes a grace period of three years. The first installment will be repaid in September 2017.

The agreement allows for a longer three-year grace period instead of two; and it extends the repayment period to 12 years versus eight years for the previously obtained syndicated loan.

The agreement also allows Jabal Omar to distribute cash dividends to its shareholders from remaining earnings after paying NCB’s installments.

Jabal Omar signed a SAR 5 billion syndicated loan agreement with six Saudi banks in September 2012, according to data compiled by Argaam