Two units of Saudi Arabia's Fawaz Alhokair Group have signed sharia-compliant financing facilities worth 4.6 billion riyals ($1.2 billion) to fund real estate developments, a statement said on Sunday.
Arabian Centers Company Limited (ACCL) and Saudi FAS completed deals worth 2.7 billion riyals and 1.9 billion riyals respectively, according to a statement from law firm Latham & Watkins, which advised the firms.
The transactions took almost a year to complete due to the complex structures which have never been used in Saudi before, Muhanad Awad, chief executive of FAS Capital, the financial and investment arm of Alhokair, said in the statement.
Alinma Bank, Gulf International Bank, National Commercial Bank, Samba Financial Group and Saudi Hollandi Bank provided the ACCL facility, with Alinma the sole financier of the Saudi FAS deal, the statement added.
No details of the terms for the financing was provided. King & Spalding was legal counsel to the banks.