SNB extends SAR 5.8 bn facility to Areeb Capital, launches AT1 sukuk issuance

Real estate financing form Areeb Capital secured a SAR 5.8 bn Shariah-compliant facility from the Saudi National Bank (SNB) to support the expansion of its real estate investment portfolio, it said in a post on LinkedIn. No further details were immediately available.

ICYMI- Areeb purchased a 32 mn sqm plot in Dammam for SAR 12 bn to develop a multi-use project last September, which was one of the Eastern Province’s largest real estate acquisitions.

ALSO FROM SNB- The bank kicked off an SAR-denominated additionaltier-one (AT1) sukuk issuance yesterday, it said in a filing to Tadawul. The offer amount and price are subject to market conditions. Eligible investors have until year-end to subscribe to a minimum of SAR 1 mn worth of sukuk.

SOUND SMART- Additional AT1 sukuk are Shariah-compliant bonds that banks issue to boost their capital. This type of sukuk doesn’t have a set maturity date — meaning they can last forever unless the bank decides to buy them back.

ADVISORS- SNB Capital is acting as the sole bookrunner, lead arranger, and lead manager on the transaction.