Roshn, a leading Saudi real estate developer powered by Public Investment Fund (PIF), has signed a working capital facility agreement worth SR6 billion ($1.6 billion) with three leading banks in the kingdom – SABB, Bank Albilad and Al Rajhi.

With a total value of SR2 billion each, these new credit facilities will constitute a fundamental change in the real estate sector as well as a basis for diversifying financing, said the Saudi developer.

The move comes as part of Roshn’s efforts to obtain external funding for its upcoming integrated community projects, it stated.

Announcing the deal, Roshn said it was a ‘landmark debt transaction’ in the real estate development market and stated that it was part of its commitment to developing integrated communities in which residents live a new lifestyle.

“Taken together, these deals are an important milestone for us. By working with the kingdom’s dynamic financial sector, we can accelerate the ambitious development programme that is bringing our new way of integrated, sustainable living to cities across the kingdom,” remarked Roshn Group CEO David Grover.

“Each of the three new agreements is at a value of SR2 billion. In terms of volume, they represent a qualitative leap, and lay foundation for diversified finance,” stated Grover.