Saudi firm Ayyan Investment Company (Tadawul: 2140) obtained a SAR150mn ($40mn) sharia-compliant credit facility from Saudi Awwal Bank to expand its equity investments, according to a statement on the Tadawul exchange on September 1.
The facility points to Saudi investment firms leveraging bank funding to build equity portfolios, with Ayyan targeting both listed and unlisted holdings in a market buoyed by the kingdom's economic diversification drive. The financing was obtained on August 31.
The revolving facility, structured as a tawarruq transaction, expires after five years and is secured by a promissory note and a pledge of part of the company's investment portfolio.
Ayyan said it would use the proceeds to expand investments in equity instruments, including shares listed on the Saudi market and ownership stakes in unlisted companies. There are no related parties to the agreement.
Ayyan Investment Company is listed on the Tadawul main market. Saudi Awwal Bank, formerly the Saudi British Bank, is a Riyadh-based lender associated with HSBC.
Don’t just follow the news—understand it.
The IntelliNews PRO service includes access to reports, exclusive market data, and more news that decision-makers care about. Stay ahead of the market with IntelliNews PRO.
Sign Up NowRelated Articles
Russian analyst warns US financial threats against Iran's partners risk dollar
Threatening to cut countries that trade with Iran out of the global financial system would damage confidence in the US dollar, particularly given the exposure of China and Oman, Russian economist ... more
Riyadh Air wins access to Saudi government travel spending
Saudi Arabia's Government Expenditure and Projects Efficiency Authority has signed a framework agreement admitting Riyadh Air to the unified government travel framework, giving the carrier access to ... more
Riyadh Air launches first India route with daily Mumbai service
Saudi Arabia's Riyadh Air has begun daily flights between Riyadh and Mumbai, its first Indian destination and 10th route, ... more