Riyad REIT inks SAR 1.45B refinance deal with Riyad Bank

Logo of Riyad REIT

Riyad Capital, the fund manager of Riyad REIT Fund, announced the latter’s signing of an agreement to refinance an existing credit facility with Riyad Bank, having obtained the fund's board approval.

The maximum limit of the new facility is SAR 1.45 billion, it said in a statement to Tadawul today, March 28.

The agreement includes the reduction of the fixed profit margin by no less than 50%, compared to the previous financing facility. It also entails extending the loan maturity term to seven years from the renewal date.

Riyad REIT expects the related financial impact to be generally positive on the fund’s performance, thanks to lower financing costs associated with this refinancing agreement.