Saudi Jabal Omar Development Co. gets approval to restructure a $800m loan

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Updated 21 November 2021
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Saudi Jabal Omar Development Co. gets approval to restructure a $800m loan

RIYADH: Jabal Omar Development Co., got the Saudi ministry of finance approval to restructure the company’s remaining loans worth SR3 billion riyals, it said in a filing.

The restructuring deal includes the conversion of SR1.5bn of the total existing loan into a new Shariah-compliant subordinated perpetual instrument, as well as the maturity extension of the remaining SR1.5bn to 31 March 2031, the company known as JODC said.

Khalid Al-Amoudi, CEO of JODC, said in a statement: “This is a major milestone for our capital structure optimization plan that will set us on a more sustainable course towards completing the Jabal Omar masterplan. Our immediate focus remains on executing the financial transformation plan to support the completion of the outstanding phase. With the gradual reopening of the Kingdom to pilgrims post Covid-19, and our now more stable financial position, we are more confident in our ability to ramp up operations and construction mobilization on site."

This agreement will have the following immediate impact on the company’s financials and long-term position:

  • Reduces the Company’s total liability by SAR 1.94 billion
  • Over SAR 440 million in outstanding interest payment that has been waived will be reflected in Q4 2021 income statement
  • Deleveraging its balance sheet and improving its debt-to-equity ratio
  • Improving its cashflow profile, enabling the Company to meet its other debt obligations
  • Reducing its total debt servicing levels, enabling the Company to put the funds towards more value-enhancing use
  • Improving the Company’s capital structure, enabling it to optimize the funding mix required for the completion of the outstanding phases of the masterplan


 


Egypt–Saudi power link set to boost regional energy integration, minister says 

Updated 22 February 2026
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Egypt–Saudi power link set to boost regional energy integration, minister says 

RIYADH: Electricity interconnection projects between Egypt and Saudi Arabia will strengthen regional energy cooperation and economic integration, Egypt’s minister of electricity and renewable energy said during a visit to a key cross-border power facility. 

Mahmoud Esmat made the remarks while inspecting the Egypt–Saudi electricity interconnection station linking the two countries’ power grids, where he reviewed construction progress and equipment testing ahead of trial operations expected in the coming weeks, according to a statement from the Egyptian State Information Service. 

The project is described as the first of its kind in the Middle East in terms of scale, manufacturing technology, operation, and application in grid interconnection lines. 

The initiative supports the state’s broader vision to implement sustainable solutions aimed at ensuring the stability of the national unified grid and enhancing the reliability and quality of electricity supply. 

It also aligns with Egypt’s allocation of 136.3 billion Egyptian pounds ($2.8 billion) to the electricity and renewable energy sector in its 2025–26 development plan, nearly double the 72.6 billion pounds set aside the previous year. 

The plan focuses on diversifying energy sources, expanding renewable capacity, and strengthening the national grid to meet rising demand. 

The statement said: “The minister toured the station’s departments and control and operation center, following up on the completion of testing for all equipment and components in preparation for launching operations and synchronizing the project with the unified power grids of Egypt and Saudi Arabia in the coming weeks.” 

It added: “Esmat reviewed the implementation rate of the project and testing works, as well as the project’s timeline. He highlighted finalization of operational tests at the Badr transformer station and the Sakakin Taba 2 station, as well as the 500 kilovolts overhead transmission line extending approximately 320 km.”  

The minister said the project forms part of broader efforts to build an integrated power network connecting the two countries, facilitating efficient and flexible electricity exchange and laying the groundwork for a unified Arab electricity market. 

He added that the initiative reflects a clear vision and comprehensive strategy to strengthen the efficiency of the energy system while delivering both immediate and long-term solutions to safeguard grid stability and enhance service quality.