Jadwa REIT Saudi signs SAR 1 bln facility agreement with BSF

Logo of Jadwa Investment Co.

Jadwa Investment Co., fund manager of Jadwa REIT Saudi Fund, announcedsigning a Shariah-compliant  facility agreement with Banque Saudi Fransi (BSF) worth SAR 1 billion.

The new facility will be used to pay off all existing credit dues with BSF in full, pertaining to previous facilities valued at SAR 453.12 million. The remainder will be earmarked to finance the fund's investment objectives, Jadwa Investment said in a Tadawul filing today, Aug. 20.

The signing of this deal cut the fund’s profit margin from 2% + SAIBOR to 1.5% + SAIBOR, along with a repayment structure of repaying the full drawdown amount in one payment after five years.

During the term of the agreement, only financing costs will be incurred, the fund manager added.

The profit margin decline, according to Jadwa Investment, bodes well for the fund’s financial performance over the next five-year period.