Derayah Financial on Wednesday said that its subsidiary Derayah REIT Fund has signed a seven-year loan agreement with Al Rajhi Bank at a value of SAR 1 billion ($270 million).
The facility, which is compliant with Islamic Sharia, will be paid upon maturity, according to Derayah Financial’s statement to the Saudi Stock Exchange (Tadawul).
“The profit rate on the facility will be paid on a semi-annual basis on a pro-rata basis depending on the drawn amount,” the statement added.
The Derayah REIT Fund further indicated that it received the loan through a promissory note, pledging properties to the bank, adding that it would use the loan to finance its upcoming acquisitions.
By 10:45 am Saudi time, Derayah REIT Fund’s stock shed 0.37% to SAR 8.16, while Al Rajhi Bank’s stock inched down 0.80%, reaching SAR 87.30.