Saudi property developer Jabal Omar Development plans to raise around $447.6 million through a rights issue, which would finance about 14 per cent of its sole project in the holy city of Makkah.

"The issue premium will be set later," it said in a statement, adding that its board had recommended the SR1.68 billion ($447.6 million) capital increase.

The company has hired the world's largest Islamic lender Al-Rajhi Bank to provide "financial advise and arrange the necessary financing through diverse Islamic sharia-compliant instruments" for its project in Makkah.

Jabal Omar said in April that its previous financial adviser, Saudi investment bank Jadwa Investment, was unable to secure SR12.4 billion ($3.31 billion) to finance the project within agreed deadlines.

It later said it would present its shareholders on June 10 with a proposal allowing the firm to issue sukuk, or Islamic bonds. – Reuters