Jadwa REIT inks SAR 500 mln Islamic facility with Banque Saudi Fransi

Jadwa REIT Al Haramain Fund on Monday signed an agreement with Banque Saudi Fransi (BSF) to obtain Islamic facility worth SAR 500 million.

The agreement, under which only financing costs will be paid, will remain valid until August 31, 2022, the fund said in a bourse statement.

The facility is guaranteed by a promissory note and a pledge, and will be used for financing the fund expansions through acquisition of income-yielding properties in Makkah or Madinah, in line with its investment strategy.

These deals could result positively on the fund's net income and cash dividends due to the difference between expected income and financing costs, the fund added.

The facility drawdown period is three years. The full amount of drawdowns would be paid in lump sum on August 31, 2022.