Emaar The Economic City Secures Extended Loan Agreement with Public Investment Fund

The amendment of the facility agreement signifies enhanced support and confidence in the company’s prospects, extending the loan duration for further financial flexibility.

In a strategic move to bolster its financial structure and explore more viable repayment options, Emaar The Economic City has successfully renegotiated the terms of its existing loan with the Public Investment Fund (PIF), extending the duration from 18 to 21 months. This rescheduled facility agreement, now set to conclude on 19 November 2024, represents a critical step forward for the company, underscoring the strengthened relationship with PIF and providing a broader timeframe for financial planning and execution.

Initially signed on 20 February 2023, the loan, valued at up to SAR 1 billion, was set to end on 19 August but extended to 19 November 2024, as detailed in a recent bourse filing. This extension reflects Emaar The Economic City’s proactive financial management approach and commitment to securing a stable and sustainable future.

The loan terms were renegotiated because the company wanted to evaluate and implement the facility’s most effective repayment or settlement strategies, ensuring long-term success and growth. The secured guarantees for this loan include original securities, notably real estate assets within King Abdullah Economic City (KAEC), valued at at least SAR 1.50 billion, demonstrating the company’s robust asset base and financial integrity.

Furthermore, Emaar The Economic City has provided promissory notes by the loan agreement, reinforcing its commitment to fulfilling its financial obligations. This strategic financial manoeuvre is set against the backdrop of the company’s 2023 financial results, which indicated a significant 78.13% reduction in net losses, showcasing a promising trajectory towards recovery and profitability.