Logo of Knowledge Economic City
Knowledge Economic City (KEC) announced that all the requirements and documentations related to the financing agreement with the Tourism Development Fund and Riyad Bank were completed.
The company said in a bourse statement that a long-term Shariah-compliant Murabaha financing facility was signed on Dec. 30, 2021.
|
Financing Details |
|
|
Financing Entity |
Riyad Bank and Tourism Development Fund |
|
Financing Benefit Date |
As of the date of signing, the benefit from the financing will be to cover the costs of the Knowledge City Hub project, which is currently being implemented |
|
Financing Amount |
SAR 782 mln |
|
Duration |
13 years, including a grace period equal to the construction period until it becomes operational |
|
Guarantees for Financing |
Secured by the land of the Knowledge Economic City Hub project |
|
Objective |
Financing 79% of Knowledge Economic City Hub Project's cost, excluding land value |
The financing will go for settling the dues of the mall construction contractor, Al-Saad Contracting Co., which signed the project contract in April 2021. The project is progressing as per the agreed schedule, and will be completed by end of January 2023, after which other supplementary works will begin.
The project land area is about 186,000 square meters (sqm) in the first and second phases, with leasing spaces of about 122,000 sqm.
KEC expected to finalize the first phase and commence operations in 2024.
According to data compiled by Argaam, KEC signed, on April 22, 2021, an agreement with the Tourism Development Fund and Riyad Bank to provide SAR 782 million financing to develop the Knowledge City Hub project.
The facility will be used for developing the first phase of the project, which includes a mall, hotel and boulevard. The financing will cover 79% of the project development cost (excluding land value).
The mixed-use project will be built on an area of 68,000 sqm, with a total value of SAR 1.3 billion. It will include a five-star hotel, in addition to many tourist and entertainment facilities, shopping centers, restaurants and cafes.
Comments
{{DisplayName}}
{{ElapsedTime}}