Al Rajhi REIT Fund approves increasing credit facility limit from Al Rajhi Bank to SAR 900 mln

Logo of Al Rajhi REIT Fund

Al Rajhi REIT Fund’s board of directors approved increasing the limit of Shariah-compliant facilities offered by Al Rajhi Bank for the purpose of acquisition from SAR 600 million to SAR 900 million, conditional on not exceeding 50% from the fund’s total assets, fund manager Al Rajhi Capital said in a bourse statement today, Oct. 11.

In addition, the board gave the go-ahead for reducing profit spread on total financing from Al Rajhi Bank, and hedging against interest rates for a facility amounting SAR 193.7 million. Thus, 50% from the total financing, or approximately SAR 448 million, will have a fixed cost at a rate of 4.52% until the end of 2025.

This, accordingly, will lead to increasing the ability to acquire assets and reduce the risk of profit rate fluctuations. It will also have a positive impact on the fund as of 2023.