Jabal Omar Development Company, the firm behind a SR19bn real estate scheme in Mecca, has signed a SR5bn ($1.3bn) loan deal with a group of local banks.

The deal will be used to refinance a bridge loan that expires on 2 July and has a tenor of 12 years, with a 12-year grace period on repayments.

The lenders funding the deal are Al-Rajhi Bank, which is also financial adviser to Jabal Omar, Saudi Hollandi, SABB, National Commercial Bank, Bank al-Jazeera, Alinma and Al-Bilad. Five of the banks had already funded the SR1.35bn bridge loan that was put in place in October 2010 and had to be extended several times before the latest facility was agreed.

The Jabal Omar Development will consist of 37 towers when it is completed.