Al Rajhi Capital announces successful close of Indirect Financing Fund 4 worth over SAR 1.3B; 'AA+' credit rating

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Al Rajhi Capital announced the successful close of Al Rajhi Indirect Financing Fund 4, after fully covering the fund size of more than SAR 1.3 billion within one week, surpassing the target.

In a statement, the company said the fund obtained an "AA+" credit rating, marking the third such rating for indirect financing funds managed by Al Rajhi Capital.

The fund aims to generate regular returns by investing in a financing portfolio based on personal financing contracts from a Saudi Central Bank-licensed financing company. A portion of the invested capital, along with dividends, will be distributed periodically to unitholders, enhancing cash flows and achieving a balanced risk-return profile.

Commenting on the launch, Mohammed Al-Hathloul, Head of Equities at Al Rajhi Capital, said, “The strong demand for Al Rajhi Indirect Financing Fund 4 reflects continued confidence in our investment strategy and underscores our ability to meet investor needs through high-quality products and stable cash flows. We remain committed to developing investment solutions that support the growth of Saudi Arabia’s capital market and align with our clients’ aspirations.”

In a statement, the company added that this offering reinforces Al Rajhi Capital’s position as a leading asset manager in the Kingdom’s financing funds sector, with its market share exceeding 50% of total sector assets.

It also builds on the success of previous funds under the same strategy, through which Al Rajhi Capital has developed an integrated indirect financing platform based on diversification and efficient risk management.