Ladun Investment Company said it has secured a Shariah-compliant financing facility from Saudi Awwal Bank to fund two infrastructure development contracts in Riyadh.

The 154.76 million Saudi riyal ($41.24 million) facility has a five-year tenor and will be used to execute the first package of the Real Estate Balance Programme in Al Qirawan and Al Narjis, the company said in a statement to the Saudi stock exchange on Monday.

The facility is backed by a promissory note covering its full value, the statement said.

Earlier this month, a consortium led by Ladun and Al Ayuni Investment and Contracting Company was awarded two infrastructure development contracts in Riyadh worth SAR 2.39 billion by the Royal Commission for Riyadh City (RCRC).

The first package covers infrastructure development works in Al Qirawan (spanning 3.6 million square metres) and Al Narjis (87,000 sqm). The contract is valued at SAR 2.06 billion (inclusive of VAT).

The second package involves the development of the Namar site, covering 569,933 sqm, with a contract value of SAR 326.7 million.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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