NCB not to extend availability period for SAR 1.4 bln facility with Swicorp Wabel REIT

10/01/2021 Argaam

Swicorp Wabel REIT Fund logo


Swicorp, the fund manager of Swicorp Wabel REIT Fund, announced that the availability period for the debt facility, amounting to SAR 1.4 billion, signed with National Commercial Bank (NCB) on June 26, 2019, has elapsed.

 

No amounts were drawn from this facility by the fund during the availability period, the company said in a bourse statement.

 

In light of the challenging market conditions that were mainly triggered by the COVID-19 pandemic, and discussions to date with NCB on the subject, the bank informed in a letter dated Jan. 7, 2021, its decision to not extend the availability period of the above mentioned debt facility.

 

Swicorp is currently in discussions with various other banks to secure debt financing facilities for the fund to finance the planned growth initiates and has already received preliminary term sheets from some banks.

 

Such new debt facilities will be announced publicly by Swicorp once binding agreements relating to those debt facilities have been executed.

 

The company confirmed that there is no financial impact on the fund from not extending the facilities.

 

According to data available in Argaam, Swicorp Wabel REIT Fund obtained, on June 26, 2019, SAR 1.4 billion Shariah complaint credit facilities from NCB.

 

The amount aimed to finance the expansion plan of the fund through new acquisitions of income-generating properties that are located mainly within the Kingdom, excluding Makkah and Madinah; while ensuring diversified assets class exposure in line with the fund's investment strategy, reflecting positively on the fund's net income and cash dividends.

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