Alkhabeer REIT seals SAR 567.5M hedging deal with Al Rajhi Bank

Logo of Alkhabeer REIT Fund

Alkhabeer Capital, the manager of Alkhabeer REIT Fund, signed a Shariah-compliant hedging agreement worth SAR 567.5 million with Al Rajhi Bank today, March 12.

In a statement to Tadawul, Alkhabeer Capital said the agreement includes SAR 170 million, representing 50% of the facilities used in the initial offering, and SAR 397.5 million, covering the full amount of facilities used in the first additional offering.

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The agreement aims to fix the SIBOR rate at 4.96% and protect the fund from interest rate fluctuations throughout the maturity period, which extends until February 2030, the company added.

According to data compiled by Argaam, Alkhabeer Capital previously signed a similar Shariah-compliant hedging agreement with Al Rajhi Bank on October 30, 2024, for SAR 170 million, representing 50% of the facilities used in the initial public offering, at a fixed rate of 5.04%, with a maturity date in February 2030.