Kuwait – Mubasher: Alargan International Real Estate Company on Tuesday reported that one of its wholly-owned subsidiaries in Oman signed a banking facilities deal with a local bank.

The contract is worth OMR 5.8 million ($15 million), according to a company statement to Boursa Kuwait.

The deal aims to develop one of the projects owned by the subsidiary, in return for mortgaging land and buildings on the project land, the Kuwait-listed company added.

The company noted that the facilities include a one-year withdrawal period, and that the loan shall be repaid in seven quarterly instalments 18 months after the date of signing the contract, at an interest rate ranging between 6.25% and 6.5% annually.

Alargan had announced on Monday that Alargan Towell Investment Company in Oman signed an agreement with the Oman Ministry of Tourism to develop the integrated tourism complex Al Nakheel.

The Kuwaiti company had previously reported a slide of 89.2% in its profits reaching KWD 1.81 million in 2016, compared to KWD 16.73 million in 2015.