Al Rajhi Bank Signs Shariah-Compliant Financing Deal with Mulkia Investment Company

Al Rajhi Bank has finalised a Shariah-compliant financing agreement with Saudi Arabia-based Mulkia Investment Company, as stated in a Bourse filing on the 29th of December 2020. The facility has an associated withdrawable limit of SAR 600 million.

In addition to providing promissory notes, Al Rajhi Bank has requested that the guarantees provided for the loan also include the mortgage of real estate assets equal to 200% of the value of facilities withdrawn by Mulkia Investment Company.

Al Rajhi Bank has agreed that finance costs be repaid bi-annually, with the loan principle to be in the form of a bullet repayment at the end of the seven-year tenure. Al Rajhi Bank has also allowed for a provision to extend the loan facility within a sufficient amount of time, prior to the...