Bonyan REIT inks SAR 1.2 bln Islamic facilities with Riyad Bank, ANB

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.