Jabal Omar Development Company, a construction firm in the Kingdom of Saudi Arabia, announced on Monday that it had signed a $1.3bn loan deal to fund a property development project near the Grand Mosque in the Holy City of Mecca.
The joint loan agreement, signed with a group of local banks, will see the company pay back a $359.9m bridge loan that was secured last year, so as to fund the first phase of the megaproject in Mecca, which will include ten hotels being built at the site.
The loan has a tenor of 12 years, with a four year grace period on repayments, the company said in a filing to the Tadawul, or Saudi Stock Exchange.
A Reuters report added that seven local banks, including the providers of the original bridge loan, were involved in the fund-raising. These banks included: Al Rajhi Bank, Bank Al Jazira, National Commercial Bank, SABB and Saudi Hollandi Bank.
Alinma Bank and Bank AlBilad were also believed to have taken part in the new funding round.
The project will have nine towers overlooking Ibrahim Al Khalil Street and Um Al Qura Street, the company said.