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It comes after a tough year for the developer behind King Abdullah Economic City as the pandemic slowed major construction projects worldwide.
“The reason for the debt conversion is to improve the company’s liquidity and credit position and enhance its ability to achieve its growth objectives,” the developer said in a stock exchange filing on Thursday. “The capital increase will not result in any financial liability on or require any cash contribution by the company’s shareholders.”
The developer in March reported widening 2020 losses as it recorded an impairment of SR316 million on properties available for sale and lease and other operating assets.
The capital hike through debt conversion is subject to market and shareholder approval.
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