The state-backed firm behind Riyadh’s flagship financial hub has finalised its first independent credit facility to push ahead with major construction works. King Abdullah Financial District Development and Management Company (KAFD DMC) secured the SAR 12 billion senior-secured Murabaha facility from a prominent group of regional lenders. The 15-year financing package reflects expanding private sector appetite for funding the gigaprojects transforming Saudi Arabia.

Al Rajhi Capital acted as the sole structuring advisor for the transaction. A syndicate of leading financial players joined the deal as mandated lead arrangers, including Al Rajhi Bank, Saudi Awwal Bank, Saudi National Bank, Riyad Bank, Alinma Bank, Arab National Bank and Gulf International Bank – Saudi Arabia. Bank Albilad, Mashreqbank PSC and National Bank of Kuwait managed the transaction as bookrunners.

The substantial multi-bank package allows KAFD DMC to diversify its funding channels beyond direct state support. This shift highlights the growing investment maturity of the district since its acquisition by the Public Investment Fund (PIF) in 2018. Management plans to deploy the capital immediately to accelerate asset delivery, improve urban infrastructure and expand lifestyle offerings across the central business zone.

The transaction signals a highly disciplined approach to capital management as the mega-development enters its next phase of real estate delivery. Bankers noted that the order book for the credit facility was oversubscribed, reflecting solid underlying corporate fundamentals and strong commercial banking confidence in Riyadh’s prime real estate market.

“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.” said John Pagano, Managing Director of KAFD DMC.

Ibrahim AlSughayer, Chief Financial Officer of KAFD DMC, commented: “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, stated: “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.”