Riyadh – Mubasher: The board of Al Rajhi REIT Fund gave a green light to increase the limit of the Sharia-compliant facilities from Al Rajhi Bank for the purpose of acquisition by SAR 300 million.

The Saudi lender can provide up to SAR 900 million worth of funding instead of SAR 600 million, according to a bourse disclosure.

The financial assistance however should not exceed 50% of Al Rajhi REIT Fund’s total assets.

The board also passed the reduction of profit margin on total financing from Al Rajhi Bank, in addition to hedging against unstable interest rates for a facility amounting to SAR 193.70 million. Therefore, approximately 50% of the total financing to the REIT Fund, equivalent to nearly SAR 448 million, will have a fixed cost at a rate of 4.52% until the end of 2025.

The board’s resolutions will likely increase the ability to acquire assets, reduce the risk of profit rate fluctuations, and have a positive impact on the fund as of 2023.

During the first half (H1) of 2022, the Saudi lender generated net profits worth SAR 8.4 billion, compared to SAR 6.90 billion in H1-21.