Arab News, Wednesday, Jun 29, 2022 | Zul Qaadah 29, 1443
Saudi Derayah REIT to restructure $200m financing for cost reduction
Saudi Arabia:
Derayah REIT’s board has approved restructuring the fund’s outstanding financing
facility, which was valued at SR748 million ($200 million) by 2021-end.
According to a bourse filing, the fund manager,
Derayah Financial, has agreed with a local bank to reschedule existing
financing, with maturity staggered in 2026 and 2027.
As per the agreed terms, the profit spread will be
reduced by 20 percent and the maturity will be extended to seven years from the
restructuring date.
The move is aimed at cutting Derayah REIT’s
financing expenses, which will have a positive impact on its financial results
for the second half of the ongoing year.