ROSHN signs SR 6.0 BN revolving credit facilities with three leading Saudi Banks
- The revolving working capital facilities with Saudi British Bank (SABB), Bank Al Bilad and Al Rajhi Bank represent one of the landmark debt transactions in the real estate development market which aligns with ROSHN’s strategic objective to expand its funding base.
- The three deals totaling SAR 6 billion (USD $1.6B) arrive as the real estate company ramps up operations to bring its vision for a new way of living to citizens across the Kingdom.
Riyadh – 03 January 2023 - ROSHN, the nation’s leading real estate developer, has inked agreements with three of Saudi Arabia’s leading financial institutions, Saudi British Bank (SABB), Bank Al Bilad and Al Rajhi Bank, to establish revolving working capital facilities with a combined value of SAR 6 billion (USD $1.6B). The three new credit deals, each amounting to SAR 2 billion ($530M) - the size of which makes them landmarks for the real estate sector - will form the foundation of a diversified funding base as ROSHN ramps up its operations across the Kingdom.
“Taken together, these deals are an important milestone for ROSHN. By working with the Kingdom’s dynamic financial sector, we can accelerate the ambitious development programme that is bringing our new way of integrated, sustainable living to cities across the Kingdom,” said ROSHN Group CEO, David Grover.
“These deals are a strategically important development for us. By securing credit facilities with leading financial institutions, we are establishing an efficient and sophisticated funding base capable of boosting shareholder return and driving our massive development programme for years to come,” said ROSHN Group CFO Avinash Pangarkar.
“We are honored by our partnership with ROSHN to improve the quality of life and contribute to the development of the real estate sector, which is in line with our strategy aimed at targeting growth related projects in the Kingdom to achieve Vision 2030 objectives,” said Yasser Al-Barrak, Chief Corporate and Institutional Banking Officer at SABB.
ROSHN is developing at an unprecedented scale in Saudi Arabia and will generate vibrant new communities in nine cities across four regions, including Riyadh, Jeddah, Al Kharj, Al Hofuf, Al Qatif, Makkah, and Abha. Its developments are changing the urban fabric of Saudi Arabia with pedestrian-friendly ‘living streets’ and a rich array of amenities that encourage an open and fulfilling lifestyle, including retail and entertainment options, hospitals, medical centres, schools, mosques, and sports facilities. Obtaining external funding has been a strategic goal for the company since its establishment in 2020.
Mr. Abdulaziz Mohammed AlOnaizan, CEO of Bank Al Bilad, confirmed that signing the Agreement with ROSHN comes within the framework of building many effective partnerships to contribute to achieving the objectives of the Kingdom’s Vision 2030, in addition to Bank Al Bilad’s support of the housing sector in the Kingdom as being one of the most prominent and leading banks in providing end-to-end solutions for all real estate financing products. He indicated that this comes as a continuation of the important role played by the bank in meeting the housing needs of citizens through the various real estate financing programmes provided by Bank Al Bilad to its customers to own the house of their choosing with competitive advantages.
“The bank aims to be a pioneer in offering all finances to their customers covering all areas of financing, particularly in home financing through a variety of different financial options that stand out and contributes by supporting housing projects as well as real-estate developers, to aid in realizing one of the pillars of Vision 2030 which aims to increase residential property ownership in line with our direction and strategy for sustainable financial solutions and reach out to a larger customers base and keep up with the increasing demand for owned property in the Kingdom,” added the Managing Director and CEO of Al Rajhi Bank Waleed Al Moqbel.
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