Asas Makeen renews SAR 350M credit facilities with Al Rajhi Bank

Asas Makeen renewed credit facilities with Al Rajhi Bank to finance land acquisitions, development activities, and residential projects

Asas Makeen Real Estate Development and Investment Co. renewed its Shariah-compliant credit facilities agreement worth SAR 350 million with Al Rajhi Bank.

In a statement to Tadawul, the company said it obtained the financing on June 21. The facilities have varying tenors of 6, 24, 36, and 120 months, as specified in the agreement.

A promissory note and mortgages over title deeds covering the financed properties were provided as collateral for the facilities, noting that there are no related parties involved.

The agreement aims to finance land acquisitions, land development, and the construction of residential real estate projects, as well as fund certain specified projects. The facilities also include financing and the issuance of a financial guarantee in favor of National Housing Co. (NHC) under one of the financing arrangements.

The company stated that the renewal comes as part of its plans to strengthen its financing capabilities for land purchases, development activities, and residential project construction, including funding specific projects and issuing a financial guarantee in favor of NHC.