ROSHN, through its real-estate asset management arm, has secured an SAR2 billion bilateral Islamic murabaha to refinance its headline acquisition of Riyadh Front, a 160,000 square metre retail-and-office destination that now carries the ROSHN brand and sits on the doorstep of the developer’s flagship Sedra community of 40,000 planned homes.
The financing stands out for its timing and structure. Rather than fund the purchase upfront, ROSHN first closed the acquisition with an intercompany loan and is now replacing the funds with bank debt. The facility size mirrors the purchase price, yet it allows up to 80% loan-to-value to be drawn, underscoring confidence in the asset’s cashflow profile.
Structured as a seven-year murabaha, the facility carries no amortisation; repayment would arrive in a single bullet at maturity, freeing rental income for dividends and improving the shareholder’s internal rate of return. A multi-tranche mechanism gives the shareholder freedom to draw only when necessary, thereby minimising cost.
Saudi National Bank acted as lender and Shariah adviser on this transaction.
