We would like to invite you to continue a survey you have started. ...

Do you trust your insurer ?

Strongly agree
Strongly disagree
Insurance provides peace of mind
Insurance is purchased only when compulsory
Terms and Conditions (small print) are clear and easily accessible
Insurance jargon (language) stands in the way of fully understanding each policy
Insurance companies try their best to uphold the details of the policy without cutting corners
Reducing risk, cutting costs and profits are more important to an insurance company than the customer
Insurance companies in the region are as professional as in other more developed markets
Age group
Do you feel your insurance provider works in your interest?
Have you had a rejected claim that you feel was not justified?
Do you trust your insurance provider?
Our Network

Register for our free newsletter

Latest News

Saudi Jabal Omar rights issue partly to pay back loan

Proceeds to partly pay back $93.3 mln loan – prospectus; Capital to increase to 9.3 bln riyals after issue; Proceeds to be also used to finance Mecca project


May 30, 2011 3:20 by

Saudi developer Jabal Omar will use part of the proceeds from a rights issue to pay back a 350 million riyals ($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 percent 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 Mecca, Islam’s holiest city.

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 5 billion riyals.

In October, the developer secured a 1.35 billion riyals bridge loan from local banks and said it would finance it through the 5 billion riyals syndicated loan.

The project in Mecca 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 5 billion Saudi riyals 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 percent at 1011 GMT, underperforming the kingdom’s bourse  which eased 0.4 percent. (Reporting by Marwa Rashad and Jason Benham; Editing by Dinesh Nair)


Tags: , , ,

Leave a Comment