Emaar The Economic City signs $270m term loan agreement with PIF
Emaar The Economic City has signed a term loan agreement of up to SR1 billion ($270 million) with Saudi Arabia’s sovereign wealth fund, according to a filing to the Kingdom’s stock exchange.
The statement noted that the loan will be repaid through a single bullet payment upon maturity.
The financing period for the term loan is 18 months from the date of the agreement, it added.
The filing further noted that the term loan agreement is guaranteed by real estate assets within King Abdullah Economic City which has a market value of no less than SR1.5 billion.
The company also provided promissory notes pursuant to the agreement, the filing added.
Through the term loan agreement, the company aims to enhance strategic plans and projects in King Abdullah Economic City.
“These projects and plans will help support the growth and development of KAEC to become a leading industrial, commercial and tourism hub for the Western Coast of the Kingdom of Saudi Arabia,” said Emaar EC in the filing.
Earlier this month, Emaar EC signed a rescheduling agreement with the Saudi British Bank revising the terms of SR976.25 million Shariah-compliant outstanding long-term Tawarruq facility.
The original loan amounted to SR2 billion, while the total current facilities amounted to SR1.28 billion, it stated in a bourse filing.
The amended terms of the facility also include a grace period up to June 2023 and repayment starting from June 2023 until December 2029 in semi-annual installments.
Before rescheduling, the financing period was from September 2014 until September 2021, the company said in a statement to Tadawul.
In November 2022, Emaar EC announced the sale of an industrial plot to Ceer National Automotive Co. to build a specialized factory for electric vehicles.
The deal was valued at SR359.04 million, which Ceer will pay Emaar EC in installments over 15 years, according to a Tadawul statement.
Upon completion, the manufacturing facility will create thousands of direct and indirect high-skilled jobs, most of them dedicated to Saudi nationals.