Saudi developer Jabal Omar will use part of the proceeds from a rights issue to pay back a SR350 million ($93.33 million) bridge loan from Al-Rajhi Bank, it said in a prospectus.

Jabal Omar said on Sunday its shareholders approved a 38.4 per cent capital increase to 9.3 billion riyals ($2.48 billion) through a rights issue.

The prospectus, posted on the Capital Markets Authority website, said the proceeds would also be used to finish the first phase and start the second phase of building a project close to the Grand Mosque in Makkah.

It said the rights issue dates would be from June 6 to June 15. No further details of the Al-Rajhi loan was provided in the prospectus.

The prospectus also said the largest part of the cost of the first phase will be financed through a syndicated loan from local banks worth up to SR5 billion.

In October, the developer secured a SR1.35 billion bridge loan from local banks and said it would finance it through the SR5 billion syndicated loan.

The project in Makkah will include luxury hotels, shops and houses. The developer sought shareholders' approval last year for a change in its basic charter that would allow it to borrow more.

Last week, Saudi developer Emaar Economic City received a SR5 billion loan ($1.33 billion) from the kingdom's finance ministry to speed up construction of a project.

Jabal Omar's shares were down 1.6 per cent at 1011 GMT, underperforming the kingdom's bourse which eased 0.4 percent.-Reuters