KAFD DMC breaks from state funding with SAR 12 bn debt facility

KAFD gets a debt package

KAFD DMC lands its first SAR 12 bn debt package: King Abdullah Financial District Development and Management Company (KAFD DMC) has secured a 15-year, SAR 12 bn (USD 3.2 bn) syndicated Murabaha facility in its first independently secured debt package as it shifts away from direct state funding, according to a press release.

Why it matters: The facility will fund the ongoing development and asset enhancement of Riyadh’s primary financial district. KAFD previously announced plans for a 2026 monorail launch to improve district-wide connectivity and teamed up with Samsung last year to integrate smart city systems. The district is also working alongside international hospitality groups like Intercontinental Hotel Group (IHG) to open two new hotels by 2027.

ADVISORS- Al Rajhi Capital was tapped as the facility’s structuring advisor. Al Rajhi Bank, Saudi Awwal Bank, Saudi National Bank, Riyad Bank, Alinma Bank, Arab National Bank, and Gulf International Bank – Saudi Arabia acted as mandated lead arrangers, while Bank Albilad, Mashreqbank, and National Bank of Kuwait stepped in as bookrunners.

Riyadh Air secures landmark IATA membership

Riyadh Air successfully secured membership in the International Air Transport Association (IATA), according to a press release. The integration into IATA will allow the airline to connect with worldwide systems for ticketing, billing, and interline traffic.

ICYMI- This milestone comes as the airline launched its first domestic route linking Riyadh and Jeddah on Sunday, and five days after its first commercial international flight to London Heathrow.