SAUDI ARABIA: Alkhabeer Capital has entered into a profit rate swap hedging agreement with alrajhi bank for SAR170 million (US$45.26 million) to fix the profit rate of 50% of a financing facility used in Alkhabeer REIT Fund’s initial offering, at a fixed rate of 5.04%.
The hedging facility is expected to protect the fund from profit rate fluctuations during the remaining tenor of the financing facility, which is worth a total of SAR737.5 million (US$196.34 million) and is set to mature in September 2031.
