The Clap
Alinma Investment, manager of the Alinma REIT Retail Fund (4345), announced that the fund has signed a Sharia-compliant credit facilities agreement with the “Alinma Bank” (1150), with a value of SAR 750 million.
What
Alinma Investment reported that the facilities signed were in favor of the fund in return for mortgaging income-generating real estate and a promissory note.
The profit margin will be 1.3% + SIBOR for 3 months, as the financing period is 8 years.
So What
SIBOR is the interest rate offered between Saudi banks for three months.
Its prices are the backbone on which individual and corporate loans are based, in addition to some issues of sovereign bonds priced at variable interest in the local market.
Now What
The credit facilities will be used to finance the acquisition of new assets for the Alinma REIT Retail Fund.
