Emaar amends a loan agreement with the Public Investment Fund by one billion riyals

Emaar Economic City Company signed yesterday, an agreement to amend and reformulate binding on the current shareholder loan agreement with the Public Investment Fund.
The company had announced on the Tadawul Saudi Arabia website the signing of a note of conditions that are not bound on 04 Rabi` al -Awwal 1446 AH (corresponding to September 07, 2024 AD) with the Public Investment Fund regarding a possible shareholder loan with a limit of one billion riyals.
The company concluded a binding agreement with the fund, in order to provide a loan of up to one billion riyals. This agreement was carried out by amending and reformulating the current shareholder loan agreement with the fund and related to the previous loan of one billion riyals and the full user, which was signed on February 19, 2023 AD.
The available period during which the company can benefit from the new loan is 18 months from the date of signing the amendment and reformulation agreement, while the payment will be at once on the day that corresponds to 24 months from the date of signing the amendment and reformulation agreement, including payment of the original amount and commission.
The company provided guarantees represented by real estate mortgage with a value of no less than 1,500 billion riyals, in addition to providing bonds for an order that includes the original amount and commission.
The shareholder loan agreement includes an option for the fund to transfer the amounts due under the shareholder loan to shares in the company’s capital, in a way that is subject to the approval of the relevant regulatory authorities and the approval of the unusual general assembly of the company, where the transfer equation was agreed.
It is worth noting that the fund is a related party, as it is one of the major shareholders in the company.
The shareholder loan aims to cover capital expenditures and project costs, and the signing of the amendment of this agreement is also part of the financial restructuring plan announced by the company, which aims to enhance the financial and operating stability of the company and to restructure the capital to improve its ability to move forward in achieving its growth plans.