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Arabian Centres inks $1.4bn Murabaha, Ijara deals

Arabian Centres inks $1.4bn Murabaha, Ijara deals
Banks providing the finances are led by Samba Financial Group
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Riyadh – Mubasher: Arabian Centres Company has signed Islamic finance facilities worth a total of $1.4 billion (SAR 5.25 million) with a number of banks.

Banks providing the finances are Samba Financial Group as 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, Islamic Banking Division of Mashreqbank as Book Runners and Mandated Lead Arrangers.

Samba Financial Group was chosen as Ijara Investment Agent, Murabaha Investment Agent, Security Agent, as well as account bank, the company said in a statement to the Saudi Stock Exchange (Tadawul) on Wednesday.

As for the credit facility duration, the revolving murabaha facility is a 3-year agreement, subject to two one-year extension options, while the term murabaha tranche B is 12 years. Meanwhile, the ijara tranche A is 8 years, and the ijara tranche B is 12 years.

The aim of the Sharia-compliant finances is to fund the repayment of amounts outstanding under existing facilities, payment of fees, costs and expenses, and the funding of general corporate purposes.

The statement further noted that the company shall apply all amounts utilized by it under a term murabaha facility and a revolving murabaha facility towards its general corporate and working capital purposes.