Derayah REIT secures SAR 1 bln Islamic facility from Al Rajhi Bank

Derayah REIT on Wednesday signed a SAR 1 billion Shariah-compliant facility agreement with Al Rajhi Bank to acquire new assets, fund manager Derayah Financial said in a bourse statement.

The loan is valid for seven years and will be repaid upon maturity date.

The accrued interest rate will be paid bi-annually on a pro rata basis, depending on the drawn amount.

“We expect the deal to reflect positively on Derayah REIT’s financial results, as no related parties are involved,” the fund manager said.