ridge finance is a first step toward arranging a Shariah-compliant syndicated finance that could reach up to SR5b JEDDAH: Jabal Omar Development Company (JODC), the leading planner and developer of the Jabal Omar mountain area, has received agreements for bridge funding collectively worth SR1.35 billion from five national banks, namely Al Rajhi Bank, National Commercial Bank (AlAhli Bank), Bank AlJazira, the Saudi British Bank (SABB) and Saudi Hollandi Bank. The bridge loan provides immediate cash flow that would serve as a working capital until the round of funding goes through and acts to bridge the gap between times when financing is needed. The Jabal Omar development in Makkah project calls for construction of residential and commercial center in area close to the Grand Mosque in Makkah. The master plan of development covers 230,000 square meters. The development consists of 39 commercial and residential towers, notable of which is the 50-storey Twin Tower. The funds will be used to accelerate the completion of the first phase of the project which includes nine towers overlooking Ibrahim Al-Khalil and Um Al-Qura streets. This bridge finance is considered to be a first step toward arranging a Shariah-compliant syndicated finance that could reach up to SR5 billion in the coming months. JODC is currently about to satisfy all banks' requirements to close the syndicated finance. The company, through its financial advisor AlRajhi Capital, has received an interest from a group of local banks to participate with amounts exceeding SR5 billion.Sheikh Abdul Rahman bin Abdul Qadir Faqih, chairman of Jabal Omar Development Company, said: “The size of the funding by these Saudi banks demonstrates the confidence and commitment in supporting grand projects like Jabal Omar, enabling the growth and diversification of the national economy. He added that the first tranche is expected to be released within this year. The project has led other developers to follow our lead in improving and urbanizing the central area surrounding the Mosque. “We are fully committed to completing this mega project which serves visitors to the Grand Mosque, a landmark so precious to the hearts of all Muslims around the world,” he noted.
