King Abdullah Financial District Development and Management Company (KAFD DMC), the developer and operator of Riyadh’s premier business and lifestyle destination, has secured a SAR12 billion ($3.20 billion), 15-year, senior-secured Murabaha facility, its first independently secured debt facility.
Arranged with a syndicate of leading local and regional financial institutions, the facility demonstrates market confidence in KAFD’s long-term fundamentals and increasing private sector interest in financing major projects across the Kingdom, the developer said.
Al Rajhi Capital acted as the Structuring Advisor for the Facility, with participation from Al Rajhi Bank, Saudi Awwal Bank, Saudi National Bank, Riyad Bank, Alinma Bank, Arab National Bank, Gulf International Bank – Saudi Arabia, as Mandated Lead Arrangers, along with Bank Albilad, Mashreqbank PSC and National Bank of Kuwait as the Bookrunners. The breadth and profile of the participating institutions reinforce KAFD’s attractiveness to private sector investors, underpinned by its track record of delivery and long-term outlook.
"The facility diversifies funding sources and bolsters KAFD’s ability to execute its long-term strategic priorities. The company’s ability to attract significant non-government funding underscores its maturity as a trusted investment destination, reinforcing the strength and confidence among local and regional banking partners," it said.
This confidence has been built steadily over KAFD’s eight-year transformation since its acquisition by the Public Investment Fund (PIF) in 2018. The facility will be used for further development across the district, including the continued delivery and enhancement of KAFD’s assets, supporting the district’s long-term development objectives and positioning as a leading global business and lifestyle destination.
KAFD DMC Managing Director, John Pagano, highlighted the significance of the facility to KAFD’s growth, noting: “Securing this landmark multi-bank facility is a strong vote of confidence in KAFD’s strategy and proven delivery record. It strengthens our optionality, diversifies our funding sources, and positions us to accelerate the next chapter of the district’s growth in partnership with private capital. KAFD has moved from vision to investable reality, an enduring platform for business and lifestyle at the heart of Riyadh’s economy, aligned with the ambitions of Saudi Vision 2030.”
Ibrahim AlSughayer, Chief Financial Officer of KAFD DMC, said: “This facility reflects the confidence of our banking partners in Riyadh’s real estate market, in KAFD as a leading development, and in our ability to execute our strategic vision. The facility supports our ongoing development of KAFD, as we continue to cement KAFD's role as Riyadh's leading business and lifestyle destination.”
“The funds will be used to advance key development priorities and reinforce KAFD’s standing at the heart of Riyadh’s economic growth and diversification,” he added.
Hossam E Al Basrawi, Chief Executive Officer of Al Rajhi Capital, said: “KAFD is a strategic national asset and plays a critical role in supporting the Kingdom’s Vision 2030 objectives. We are honoured to have partnered with the Company on this landmark transaction as the sole Structuring Advisor. The strong demand reflected in the oversubscribed order book, together with participation by ten local and regional banks, is a clear testament to the Company’s unique market positioning and robust business fundamentals.” - TradeArabia News Service
