Jabal Omar Development Company announces the signing of a SAR 1.6 billion Guarantee Issuance Agreement with the Ministry of Finance
Jabal Omar Development Company announces the signing of a Guarantee Issuance Agreement with the Kingdom of Saudi Arabia, acting through the Ministry of Finance (“MOF”) whereby MOF issued a guarantee to Banque Saudi Fransi for the purpose of providing Jabal Omar Development Company with credit facilities amounting to SAR 1.6 billion.
The guarantee was issued after agreeing on a number of representations and warranties to MOF, in addition to updating the mortgage registered previously to include the amount of the guarantee.
The credit facilities’ tenor will be 15 years from the date of signing the facility agreements on 8 March 2021
The facilities will be used to complete the remaining work of the Phase 3 of the Jabal Omar project, which consists of 4 towers with 2,160 rooms and a total commercial area of 26,435 sqm and 621 parking spaces.
Note that this agreement is classified as a related party agreement given the board member Mr. Thalb Al-Shamrani is a senior executive in the Ministry of Finance.