CEO said Jabal Omar Development Khaled Al-Amoudi, in an interview with Al-Arabiya channel, said that according to the deal with the Al-Inma Makkah Real Estate Fund, the value of the company’s financial obligations will decline significantly and the debt levels in its balance sheet will decrease.
He added, “After the Real Estate Development Fund deal, we are approaching the size of debt to assets 1 to 1, and the final figures will be announced after their audit within the third quarter budget.”
He pointed out that liquidity levels will improve significantly, in conjunction with the release of cash flows of about 540 million riyals, indicating that they will be optimally employed in a manner that achieves greater value for the benefit of the company.
Al-Amoudi confirmed that this deal is gaining great momentum as it is the most important and largest initiative within the company’s capital structure improvement program.
“This decision puts the company on the right track towards broader horizons of sustainable growth in the future, and I believe that it will provide the necessary financing for phases 2 and 3 of the project, and we expect in the first quarter of 2023 to celebrate the completion of phases 2 and 3,” according to Al-Amoudi.
With regard to the financing of the fourth stage, Al-Amoudi said, “We will provide the necessary financing to prepare all important stages, and I believe that there are no proposals for financing or government guarantees on the table, and we are working to provide financing through self-alternatives for the company.”
The Extraordinary General Assembly of Jabal Omar Development Company, in its meeting on Thursday, August 25, approved the recommendation of the company’s board of directors to increase its capital from 9.29 billion riyals to 11.55 billion riyals by transferring the debts owed by the company to the Alinma Makkah Real Estate Fund, amounting to 5.30 billion riyals.
The company said in a statement posted on the Saudi Tadawul Group website, the general assembly approved the recommendation of the company’s board of directors to increase its capital from 9.29 billion riyals to 11.54 billion riyals and increase the number of shares from 929.4 million shares to 1.15 billion shares, which represents an increase of 24.22% in the capital The company’s current money for the purpose of transferring all the debts owed by it to the Alinma Makkah Real Estate Fund (in its capacity as the creditor) by issuing (0.442) new ordinary shares in the company to the fund’s unit holders for each unit they own in the fund.