By Mohammed Idries
Riyadh-Mubasher: Jabal Omar Development Co. was ready to repay the first installment reaching SAR 650 million of the finance ministry’s SAR 3 billion loan, a first-hand source told Mubasher.
However, the company delayed the repayment for the second time as part of its strategic plan.
The developer would have used the recent loan worth SAR 900 million raised from Bank Albilad to repay the ministry’s financing, the source said. “Thus, we didn’t need to resort to borrowing from another bank to repay the matured loan.”
The loan had a life span of eight years, with a grace period of two years for the first installment.
The company signed on Wednesday an agreement with Saudi Arabia’s finance ministry to delay the first installment of a SAR 3 billion loan.
On 2 February 2013, Jabal Omar had obtained the finance ministry’s approval to delay the payment for two years, and thus the first installment was initially rescheduled for 1 January 2016.
Translated by Abdul Maguid Aboshahla
