Riyadh – Mubasher: Saudi Fransi Capital announces that Bonyan REIT has signed two sharia-compliant financing facility agreements valued at SAR 1.2 billion with Riyad Bank and Arab National Bank (ANB).

The first agreement worth SAR 700 million was conducted with Riyad Bank with a tenor of seven years, according to Saudi Fransi Capital’s statement to the Saudi Stock Exchange (Tadawul) on Sunday.

Under the deal, the loan will be paid on a quarterly basis, starting from the date of funds withdrawal to purchase real estate assets for the fund.

The second deal, valued at SAR 500 million, was signed with ANB with a tenor of five years, extendable for two additional years.

The facility will be repaid upon maturity on a semi-annual basis, starting from the date of funds withdrawal to purchase real estate assets for the fund.

“As security for these facilities, promissory notes and pledge on Fund’s properties will be provided to both banks upon withdrawal of loan proceeds,” the statement highlighted.

Saudi Fransi Capital noted that the loans will be used to finance the fund’s acquisition of new income-generating properties located within the Kingdom.