Riyadh,  King Abdullah Financial District Development and Management Company (KAFD DMC), the developer and operator of Riyadh’s premier business and lifestyle destination, has secured a SAR 12 billion, 15-year, senior-secured Murabaha facility, its first independently secured debt facility. Arranged with a syndicate of leading local and regional financial institutions, the facility demonstrates market confidence in KAFD’s long-term fundamentals and increasing private sector interest in financing major projects across the Kingdom.

Al Rajhi Capital acted as the Structuring Advisor for the Facility, with participation from Al Rajhi Bank, Saudi Awwal Bank, Saudi National Bank, Riyad Bank, Alinma Bank, Arab National Bank, Gulf International Bank – Saudi Arabia, as Mandated Lead Arrangers, along with Bank Albilad, Mashreqbank PSC and National Bank of Kuwait as the Bookrunners. The breadth and profile of the participating institutions reinforce KAFD’s attractiveness to private sector investors, underpinned by its track record of delivery and long-term outlook.

The facility diversifies funding sources and bolsters KAFD’s ability to execute its long-term strategic priorities. The Company’s ability to attract significant non-government funding underscores its maturity as a trusted investment destination, reinforcing the strength and confidence among local and regional banking partners. This confidence has been built steadily over KAFD’s eight-year transformation since its acquisition by the Public Investment Fund (PIF) in 2018. The facility will be used for further development across the district, including the continued delivery and enhancement of KAFD’s assets, supporting the district’s long-term development objectives and positioning as a leading global business and lifestyle destination.

KAFD DMC Managing Director, John Pagano, highlighted the significance of the facility to KAFD’s growth, noting: “Securing this landmark multi-bank facility is a strong vote of confidence in KAFD’s strategy and proven delivery record. It strengthens our optionality, diversifies our funding sources, and positions us to accelerate the next chapter of the district’s growth in partnership with private capital. KAFD has moved from vision to investable reality, an enduring platform for business and lifestyle at the heart of Riyadh’s economy, aligned with the ambitions of Saudi Vision 2030.”

Ibrahim AlSughayer, Chief Financial Officer of KAFD DMC, said: “This facility reflects the confidence of our banking partners in Riyadh’s real estate market, in KAFD as a leading development, and in our ability to execute our strategic vision. The facility supports our ongoing development of KAFD, as we continue to cement KAFD's role as Riyadh's leading business and lifestyle destination.”

“The funds will be used to advance key development priorities and reinforce KAFD’s standing at the heart of Riyadh’s economic growth and diversification,” he added.

Hossam E. Al Basrawi, Chief Executive Officer of Al Rajhi Capital, said: “KAFD is a strategic national asset and plays a critical role in supporting the Kingdom’s Vision 2030 objectives. We are honored to have partnered with the Company on this landmark transaction as the sole Structuring Advisor. The strong demand reflected in the oversubscribed order book, together with participation by ten local and regional banks, is a clear testament to the Company’s unique market positioning and robust business fundamentals.”

The transaction is part of KAFD’s disciplined approach to capital management as the district continues to strengthen its business and urban offerings.

About KAFD

Situated in the Saudi capital, Riyadh, KAFD is an iconic destination that merges the worlds of business and lifestyle in a digitally integrated and sustainable ecosystem, transforming the way contemporary communities live, work, and play. The destination is owned and managed by King Abdullah Financial District Development and Management Company (KAFD DMC), which was established in 2018 and is a PIF Company.

With a vision to build a dynamic city of tomorrow, the Kingdom’s first vertical city solution, spanning 1.6 million square meters with 95 buildings designed by 25 world-leading architectural firms, has not only shaped the skyline of Riyadh but also transformed the city's economic landscape and redefined the essence of urban living. It is the world’s largest LEED Platinum-certified business and lifestyle district, epitomizing Saudi Arabia’s vision for economic diversification, quality of life, and sustainable development.

For further details about KAFD, please visit www.kafd.sa

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