Emaar The Economic City extends $266mln loan duration with PIF

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Riyadh – Emaar The Economic City has rescheduled, on 1 April 2024, a facility agreement offered by the Public Investment Fund (PIF) to be extended from 18 months to 21 months.

The loan is worth up to SAR 1 billion and was originally signed on 20 February 2023. Therefore, the duration of the facility agreement has been set to end on 19 November 2024 instead of 19 August, according to a bourse filing.

Emaar The Economic City elaborated that the reason behind rescheduling the loan is to provide additional support to evaluate repayment or settlement alternatives for the facility.

Meanwhile, the guarantees offered for the rescheduled loan are “original securities provided that include security over certain real estate assets within King Abdullah Economic City (KAEC) with a market value of no less than SAR 1.50 billion.”

The listed firm further provided promissory notes pursuant to the loan agreement.

It is worth noting that the PIF is a substantial shareholder in Emaar The Economic City, which financial results in 2023 showed a 78.13% decrease in net loss.