Jadwa REIT inks SAR 200 mln Islamic facility with Riyad Bank

Jadwa REIT Al Haramain Fund on May 8 signed an agreement with Riyad Bank to obtain Islamic facility worth SAR 200 million, Jadwa Investment Co. said in a statement to Tadawul.

The loan, which is guaranteed by a promissory note and a pledge on properties, will remain valid for three years, and financing costs only will be paid.

The facility will be used for financing the fund expansions through acquisition of income-yielding properties in Makkah or Madinah, in line with its investment strategy, which is likely to reflect positively on the fund's net income and cash dividends due to the difference between expected income and financing costs.

The drawdown period is two years, with the full amount of drawdowns would be paid in lump sum at the end of the loan tenure.