Bonyan REIT Fund has signed two Sharia-compliant credit facility agreements worth SAR 1.2 billion, the fund manager Saudi Fransi Capital said in a bourse statement on Sunday.
The first deal worth SAR 700 million was concluded with Riyad Bank.
Interest on the seven-year Islamic loan will be paid on a quarterly basis, starting from the date of funds withdrawal to purchase real estate assets for the fund.
The loan will be repaid in a lump sum upon maturity, Saudi Fransi Capital added.
The second SAR 500 million worth of facility was inked with Arab National Bank (ANB).
Interest on the five-year facility, which is extendable for two additional years, will be paid on a semi-annual basis, starting from the date of funds withdrawal to purchase real estate assets for the fund.
The loan will be repaid in a lump sum upon maturity.
These facilities will be secured by promissory notes and a pledge on the fund’s properties to both banks upon withdrawal of loan proceeds.
The facilities will be used to finance Bonyan REIT’s acquisition of new income-generating properties across the Kingdom, the statement added.
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