en.Wedoany.com Reported - The King Abdullah Financial District Development and Management Company (KAFD DMC) has secured a $3.2 billion, 15-year senior secured Murabaha financing, marking its first independent debt financing.
The financing was arranged by a syndicate of leading local and regional financial institutions. The developer stated that this reflects market confidence in KAFD's long-term fundamentals and indicates growing private sector interest in financing large-scale Saudi projects. The breadth and reputation of the participating institutions further strengthen KAFD's appeal to private sector investors, underpinned by its track record of delivery and long-term prospects.
Al Rajhi Capital served as the structuring advisor for the financing. Participants include 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), as well as Bank Albilad, Mashreqbank PSC, and National Bank of Kuwait (as Bookrunners).
The company stated that the financing diversifies funding sources and enhances KAFD's ability to execute its long-term strategic priorities. Its ability to attract non-government funds highlights its maturity as a credible investment destination and reinforces confidence among local and regional banking partners.
Since its acquisition by the Public Investment Fund (PIF) in 2018, KAFD has gradually built this confidence through eight years of transformation. The financing will be used for further development of the district, including the continued delivery and enhancement of KAFD assets, supporting the region's long-term development goals and positioning it as a leading global business and lifestyle destination.
John Pagano, Managing Director of KAFD DMC, stated that securing this multi-bank financing is a vote of confidence in KAFD's strategy and delivery record, enhancing the company's optionality, diversifying funding sources, and enabling collaboration with private capital to accelerate district development. KAFD has evolved from a vision into an investable reality, becoming a lasting business and lifestyle platform at the economic core of Riyadh.
Ibrahim AlSughayer, CFO of KAFD DMC, noted that the financing reflects banking partners' confidence in the Riyadh real estate market, KAFD as a leading development district, and the company's ability to execute its strategic vision. The funds will be used to advance key development priorities, strengthening KAFD's position at the core of Riyadh's economic growth and diversification.
Hossam E Al Basrawi, CEO of Al Rajhi Capital, concluded that KAFD is a strategic national asset playing a pivotal role in supporting Saudi Vision 2030 goals. The strong demand reflected in the oversubscribed order book, along with the participation of 10 local and regional banks, attests to the company's unique market positioning and robust business fundamentals.
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