UQDC partially repays credit facilities with Alinma Bank from IPO proceeds

Umm Al Qura for Development and Construction Co. (UQDC) used as much as SAR 1.5 billion from its recent initial public offering’s (IPO) net proceeds for the partial settlement of its existing credit facilities with Alinma Bank.

Accordingly, the repaid credit limits are to be reinstated and made available for withdrawal to gradually finance project-related commitments as they come due, the company said in a statement to Tadawul today, March 27.

The move is aimed at reducing financing costs and improving UQDC financial metrics, the statement added.

In its IPO prospectus, the company said most of the offering’s proceeds will be used to fund the costs associated with real estate compensation, infrastructure, MASAR destination activation and project financing as well as operating expenses, which include the refinancing of existing credit facilities as needed and in line with optimal cash and liquidity management.

UQDC started trading on the Main Market (TASI) on March 24, after the completion of its IPO.