Alkhabeer REIT signs SAR 170M hedging deal with Al Rajhi Bank

Logo of Alkhabeer REIT Fund

Alkhabeer Capital, manager of Alkhabeer REIT Fund, signed on Oct. 30 a Shariah-compliant hedging agreement worth SAR 170 million with Al Rajhi Bank.

For more news on listed companies

In a Tadawul statement, Alkhabeer Capital said the deal entails a fixed 5.04% SAIBOR during the tenure of these credit facilities, therefore hedging the fund against possible changes in the floating interbank lending rate.

The SAR 170 million represents 50% of the credit facilities used in the fund’s initial public offering (IPO), as Alkhabeer Capital had earlier signed a deal to renew and restructure worth SAR 1.03 billion worth of credit facilities with Al Rajhi Bank, maturing in September 2031.

The breakdown of the current total funding with Al Rajhi Bank of SAR 737.5 million is as follows: SAR 340 million for the fund's IPO and SAR 397.5 million for the fund's first additional offering.

The fund had fixed the SAIBOR rate for the first additional offering at 1.94%, maturing in September 2025.