Al Rajhi REIT seals 2 facility deals worth SAR 2.5B with Al Rajhi Bank, SAB

Logo of Al Rajhi REIT

Al Rajhi Capital, the fund manager of Al Rajhi REIT, announced the signing of Shariah-compliant credit facility agreements with Al Rajhi Bank and Saudi Awwal Bank (SAB), with total facility limits of SAR 1.75 billion and SAR 750 million, respectively, according to a bourse filing.

Part of the facilities will be used to refinance existing obligations, while the remainder will support any future acquisition transactions aimed at enhancing targeted returns for unitholders and achieving the fund’s objectives.

The financing tenor extends to seven years for the portion provided by Al Rajhi Bank and 5-years for the portion provided by SAB, with repayment of the full drawdown amounts at the end of each respective term.

During the agreement term, the fund will incur only the cost of financing, with the fund’s assets serving as collateral in addition to the issuance of a promissory note as a covenant for obtaining the facilities.

Following the full drawdown, the total outstanding debt for the fund will be limited to these facilities, with no related parties to the deal.

Al Rajhi Capital expects that the agreements will support the fund’s financial performance and help maintain the maximum financing ratio of 50% of total fund assets, in line with the fund’s terms and latest financial statements.