Saudi PIF unit KAFD DMC closes $3.2 billion Islamic financing deal

By Hadeel Al Sayegh

BENGALURU, June 15 (Reuters) - King Abdullah Financial District Development and Management Company has closed a 12 billion riyal ($3.2 billion) Murabaha Islamic financing facility, the first debt financing secured by the subsidiary of Saudi Arabia's Public Investment Fund independently of its state backer, according to a statement on Monday.

The 15-year senior-secured facility was arranged by a syndicate of Al Rajhi Bank, Saudi Awwal Bank, Saudi National Bank, Riyad Bank, Alinma Bank, Arab National Bank and Gulf International Bank-Saudi Arabia, while Bank Albilad, Mashreqbank PSC and National Bank of Kuwait acted as bookrunners.

Foreign banks and institutional investors have largely stayed on the sidelines of Saudi mega projects, leaving state-linked developers to draw on captive local liquidity to advance Vision 2030 infrastructure.


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