Saudi Bonyan REIT secures 1.2 bln riyals Islamic financing to expand portfolio

Closed-end real estate investment traded fund (REIT) Bonyan has secured 1.2 billion riyals ($320 million) in Islamic financing.

Bonyan REIT signed two separate Shariah-compliant financing facilities, according to fund manager Saudi Fransi Capital in a filing with Tadawul on Sunday.

The Fund signed a seven-year facility of 700 million riyals with Riyad Bank, and will receive a five-year 500 million riyals financing from Arab National Bank.

Proceeds from the financing will be used to finance the Fund’s acquisition of new income-generating properties in Saudi Arabia, said Saudi Fransi Capital.

Bonyan REIT’s portfolio is currently primarily made up of residential properties in Saudi Arabia but it also includes apartments in Dubai.

For the six months ending June 30, its net asset value was 1.45 billion riyals and it made 32.3 million riyals in net profit, it reported on August 8.

($1 = 3.75 Saudi riyals)

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