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.
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