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INVESTOR RELATIONS

Jabal Omar Development Company (“JODC”, the “Company”) received the approval of the Ministry of Finance (“MoF”) to restructure its SAR 3.0bn loan

Introduction
JODC makes reference to its announcement on Tadawul dated 13 December 2011 regarding the receipt of a SAR 3.0bn loan from MoF (the “Existing Loan”), and further to its announcement dated 29 March 2020 regarding MoF’s approval for extending the maturity of the Existing Loan and providing support to restructure the Company’s remaining loans.
Today, JODC announces it has received a resolution from MoF approving:

– Conversion of SAR 1.5bn of the total Existing Loan amount into a new Shariah-compliant subordinated perpetual instrument (the “Perpetual”), in accordance to the terms agreed;

– Maturity extension of the remaining SAR 1.5bn (the “Amended Loan”) to 31 March 2031, with bullet payment;

– Waiver of the entire accrued but unpaid profit as of 14 November 2021 amounting to SAR 440m;

– Reduction in the profit margin on the Amended Loan;

– Capitalization of all profit due between 15 November 2021 and 31 December 2025; and

– Replacement of the land plot housing the DoubleTree Hotel in the security package with plots in the Jabal Omar Project of equivalent value.

Date of singing the rescheduling of finance
2021-11-21 Corresponding to 1443-04-16

Financing entity
Ministry of Finance

Reasons for rescheduling
Support in the execution of JODC’s capital structure optimization program, reduction of annual financial charges, improvement in the Company’s capitalization and stabilization of the financial position of JODC to enable completion of the outstanding phases of the masterplan.

The Financing amount and rescheduled part
– Existing Loan amounted to SAR 3.0bn.
– SAR 1.5bn of the Existing Loan restructured and maturity extended to 31 March 2031.
– Remaining SAR 1.5bn converted into new Shariah-compliant subordinated perpetual instrument, in accordance to the terms agreed.

Financing Duration, before and after Rescheduling
– The SAR 3.0bn Existing Loan was scheduled to mature on 31 March 2022.
– The SAR 1.5bn Amended Loan now matures on 31 March 2031.
– The SAR 1.5bn Perpetual has no maturity date.

Guarantees offered for the rescheduled Financing
No guarantees or additional security offered as part of this process.

Related Parties
This transaction involves a related party as the board member Mr. Thalb Al-Shamrani is a senior executive in the Ministry of Finance.

Additional Information
The MoF approval is conditional upon execution of the relevant agreements.

Other Disclosures

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