Jabal Omar reschedules Sharia loan from Bank Albilad

Jabal Omar Development Co. said it has inked an agreement with Bank Albilad to convert a short-term Sharia compliant bridge loan from the bank into a long-term loan to boost the company’s liquidity.

Under the new agreement, the loan will be repaid in seven semi-annual installments over four years (at six-month SAIBOR plus profit margin), the company said in a statement on Tadawul.

The step is expected to have a positive impact on shareholders equity from the third quarter this year, the developer added.

Corporate governance standards have been applied to the transaction as it’s a related party transaction.

In October 2015, Jabal Omar secured a SAR 900 million Sharia-compliant bridge loan from Bank Albilad.