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PIF-backed developer Roshn is engaging with international banks to raise up to SAR 2.6 billion ($666 million) in the first quarter of 2025 as it adapts to the changing market in Saudi Arabia.
Discussions are ongoing with four international banks, including JP Morgan and Standard Chartered, Fahad Al Ghamdi, the firm’s executive director, treasury and insurance, told Zawya.
In the shorter term, Roshn expects to raise SAR 18 billion in total from local banks by the end of 2024, with a SAR 9 billion credit facility with six Saudi banks announced last month.
Roshn was originally founded to build 400,000 homes as part of Saudi Arabia’s Vision 2030 goal of 70% home ownership; the country reached 63.7% home ownership in 2023.
Roshn has branched out into commercial and retail and has also begun to focus on industrial and logistics parks.
The firm is also developing two of the 15 stadiums for Saudi Arabia’s bid to host the 2034 FIFA World Cup – the kingdom is the sole host bidder.
Al Ghamdi said the Riyadh-based developer will first focus on engaging with international banks in the first quarter of 2025 and will then seek a rating.
Financial instruments such as sukuk are likely to follow on a two-to-three-year timescale.
An IPO is also on the company’s radar, Al Ghamdi told Zawya on the sidelines of FII8, the kingdom’s investment summit, last week. However, there is currently no timescale for when it may occur.
Roshn has been “very active” in financing, Al Ghamdi said, and had previously announced SAR 6 billion in bilateral financing in 2023.
Roshn is “totally independent” from PIF, he added, but the Saudi sovereign fund provides equity as a shareholder.
“In general, we don’t go back to PIF for the guarantees,” he said, but the relationship with PIF is nonetheless likely to continue due to its association with the kingdom’s megaprojects.
Iain McBride, Head of Commercial at the firm, said the World Cup stadiums will be in the design state for at least 12 more months, with considerations including economic feasibility beyond the World Cup.
No budget has yet been announced for the cost of the two stadiums, one of which will be in South West Riyadh, while the other will be developed with state oil giant Aramco in Dammam, Eastern Saudi Arabia.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
