Arabian Centres inks Ijara, revolving Murabaha facilities worth $1.4 bln

Arabian Centres Co. signed a Shariah-compliant Ijara and revolving Murabaha facilities worth $1.4 billion (SAR 5.25 billion) with several banks, the company said in a bourse statement.

Financiers include Samba Financial Group (Global Agent), Goldman Sachs International, Samba Financial Group, Saudi British Bank (SABB), Abu Dhabi Commercial Bank (ADCB), National Commercial Bank (NCB), Arab National Bank (ANB), Al Rajhi Banking and Investment Corporation, Mashreq Al Islami, Mashreqbank’s Islamic banking division (Book Runners and Mandated Lead Arrangers), Samba Financial Group (Ijara and Murabaha Investment Agent, Security Agent, and Account Bank).

The facilities are as follows:

- A three-year revolving Murabaha facility (subject twice to one-year extension);

- A 12-year Murabaha tranche B;

- An 8-year Ijara tranche A;

- And a 12-year Ijara tranche B.

The aforementioned facilities will be used to repay outstanding facilities, pay related fees, costs and expenses, as well as to finance general corporate purposes, the company added.

Proceeds from the Murabaha and revolving Murabaha facilities will also be used to finance the company’s general corporate and working capital purposes.

The facilities are secured by promissory notes and title to the assets being used for the ijara facility, a pledge over certain moveable assets and a mortgage over certain immovable properties.

No related parties are involved in the deal, the statement concluded.