Emaar EC signs SAR 1 bln term loan agreement with PIF

Logo of King Abdullah Economic City (KAEC) 

Emaar The Economic City (Emaar EC) signed on Feb. 19 a term loan agreement of up to SAR 1 billion with the Public Investment Fund (PIF), a major shareholder, according to a filing to Tadawul.

The loan will be repaid through a single bullet payment at maturity, the company said, adding that the financing period is 18 months from the date of the agreement.

The facility is guaranteed by real estate assets within King Abdullah Economic City (KAEC), with market value no less than SAR 1.5 billion. The company also provided promissory notes pursuant to the agreement.

The deal aims to enhance strategic plans and projects in KAEC. These projects and plans will support KAEC growth and development to become a leading industrial, commercial and tourism hub for the Kingdom’s western region.

PIF is a related party to the deal, the company said.