Osool & Bakheet Investment Company Announces Material Development relating to Al Ma’athar REIT (Signing of shariah-compliant facility agreement with Al Rajhi Bank worth SR 400,000,000)
Monday, August 05, 2019 at 10:00 AM
Mon Aug 5, 2019 10:00
Osool & Bakheet Investment Company announces that Al Ma’athar REIT had signed Shariah-compliant facility agreement with Al Rajhi Bank worth SAR400,000,000 on 04/08/2019 G corresponding to 03/12/1440 H. As a collateral we have provided Al Rajhi Bank with a promissory note and mortgage pledge on properties.
The facility’s term is five years and starts from the day we avail the amount. The full amount of the facility will be paid upon maturity. The profit rate on the facility will be paid on semi-annual basis starting from the day we avail the funds from the Bank and shell be on pro rata basis depending on the withdrawn amount.
The Fund Manager explains that the impact of these facilities is aimed at financing the expansion plans of the Fund through new acquisitions of income-generating properties. In line with the Fund's investment strategy to benefit from Fund's profits and cash dividends, through the difference between the income of new properties and the cost of financing.
The Fund Manager also states that there is no deal with related parties or deal involving conflicts of interest in the Agreement.