Riyadh – Mubasher: Saudi Arabia-based Riyad Real Estate Investment Traded Fund (Riyad REIT) on Thursday announced that it will start a Shariah-compliant sukuk programme at a value of SAR 1 billion.

The issue may be implemented through a lot of tranches.

“The program aims to diversify sources of finances and their maturity profiles and to support the expansion of Riyad REIT portfolio by acquiring income producing assets beside the assets announced earlier which will be financed through the capital increase,” according to a statement to the Saudi Stock Exchange.

The programme will be launched and sukuk issue will be implemented after obtaining regulatory approvals.

The fund’s board of directors approved the programme on 24 January.

Riyad REIT is the first to issue sukuk programme in Saudi Arabia.