Media

Jadwa Investment Company ("Fund Manager")  in its capacity as the Fund Manager Jadwa REIT Al Haramain Fund (the "Fund") announces the signing of shariah-compliant facility agreement with Bank Al Bilad (the “Agreement”) after obtaining the Fund’s Board of Directors approval.

The Agreement was signed with a limit of (SAR 300,000,000), that will be used for the purpose of repaying the entire existing facility with Banque Saudi Fransi of (SAR 253,000,000) and the remaining will be used to finance the Fund's investment objectives.

The signing of the Agreement resulted in a decrease in profit margin from 2% + SAIBOR (6 months) to 1.75% + SAIBOR (6 months) and a repayment structure of repaying the full drawdown amount in one payment after five years. During the period of the Agreement, only the cost of financing will be incurred. In addition to mortgaging the Fund’s properties and issuing a Promissory note as covenants to obtain the facility.

We would like to confirm that the debt facility provided by Al Bilad Bank is the only outstanding debt facility available to the Fund after the repayment of the total debt facility with Banque Saudi Fransi. Also we would like to confirm that there is no related party involved in this process.

The impact of the decline in the profit margin is expected to be positive on the fund’s financial results over the next five-year period.