Subsequent to the announcement by SEDCO Capital that was published on 19 April 2020 on Tadawul’s and SEDCO Capital’s websites and in reference to the possibility of entering into a hedging contract to stabilize the interest rate and take advantage of the current low rates, and subsequent to the announcement by SEDCO Capital that was published on 21 May 2020 on Tadawul’s and SEDCO Capital’s websites with reference to evaluating the opportunities of concluding a hedge agreement for the remainder of the facility, SEDCO Capital in its capacity as the Fund Manager of SEDCO Capital REIT Fund (the “Fund”) wishes to announce that a Shariah-compliant hedging agreement was signed with our strategic partner Al Rajhi Bank on 22 June 2020, applies to the remaining facility of SAR 250 million (representing 51% of the total facility granted to the fund) at a fixed rate of 1.43%, to reduce the risks associated with interest rates fluctuations on this tranche of the facility granted to the fund until 15 October 2023.

This is part of the Fund Manager’s initiatives aiming to improve the Fund’s performance and protect the unitholders’ interests.