Al Ramz Real Estate Signs SAR 400 Million Facility with Bank Albilad
Al Ramz Real Estate signs a Sharia-compliant facility worth SAR 400 million with Bank Albilad for a four-year term, to be repaid in four annual installments.
Al Ramz Real Estate Company announced the signing of a Sharia-compliant financing facility with Bank Albilad worth SAR 400 million, according to a disclosure reported by the "Maal" platform.
The duration of the facility is four years (48 months calculated from the date of the first drawdown), to be repaid in four annual installments, the first of which is due 12 months after the date of the first drawdown.
The facility is secured by a pledge on units owned by the company in real estate investment funds.
The financing proceeds will be allocated to support operational requirements and investments in real estate funds, according to the published disclosure.
What do these terms mean?
Sharia-compliant facility: A financing structure based on contracts that do not involve usurious interest and are subject to review by a Sharia supervisory board.
Real estate investment funds: Entities that pool investors' funds to own and operate real estate assets and distribute their returns to them.
Pledge: Security granted to the lender over a specific asset, used to settle the obligation in the event of default.
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