Jadwa REIT Saudi inks SAR 1 bln Islamic facility with BSF

Jadwa REIT Saudi Fund has signed a SAR 1 billion Shariah-compliant financing facility agreement with Banque Saudi Fransi (BSF), fund manager Jadwa Investment said in a bourse statement on Tuesday.

The purpose of obtaining the financing facilities is to fund new acquisitions of income-generating properties within the Kingdom main cities excluding Makkah and Madinah.

These acquisitions will result positively on the fund's net income and cash dividends due to the difference between expected income and financing costs.

The facility availability period is five years and is guaranteed by a promissory note and a pledge on properties, the statement noted.

The full amount of draw-downs shall be paid in one installment at the end of facility period and only the financing costs will be paid during the facility period, the statement added.