| Element List | Explanation |
|---|---|
| Introduction | With reference to Emaar, The Economic City’s (the “Company”) announcement made on 05 Rabi Alawwal 1446H (corresponding to 08 September 2024G) on the Saudi Exchange’s website regarding the signing of a non-binding term sheet on 04 Rabi Alawwal 1446H (corresponding to 07 September 2024G) with the Public Investment Fund (the “PIF”) in relation to a potential shareholder loan of up to SAR 1,000 million, the Company announces the signing of a binding amendment and restatement agreement to the existing shareholder loan with the PIF on 18 Ramadan 1446H (corresponding to 18 March 2025G). |
| Previous Announcement | Emaar, The Economic City’s Announcement of the Signing of a Term Sheet with the Public Investment Fund in Relation to a Potential Shareholder Loan |
| Date of Previous Announcement on Saudi Exchange’s Website | 2024-09-08 Corresponding to 1446-03-05 |
| Hyperlink to the Previous Announcement on the Saudi Exchange Website | Click Here |
| Latest Developments Of The Announced Event | On 18 Ramadan 1446H (corresponding to 18 March 2025G), the Company and PIF entered into a binding agreement for the PIF to make available a SAR 1,000 million shareholder loan. The form of this agreement was an amendment and restatement agreement to the shareholder loan already in place with the PIF in relation to the previous fully utilized SAR 1,000 million shareholder loan entered into on 19 February 2023. |
The availability period for the new loan is 18 months from the signing date of the amendment and restatement agreement. The repayment will be a single bullet payment on the date falling 24 months from the signing date of the amendment and restatement agreement including the principal and commission amount.
The security provided by the Company consists of mortgages over real estate with a value not less than SAR 1,500 million, along with promissory notes for the principal and commission amounts.
The shareholder loan agreement includes a conversion option for the PIF to convert outstanding amounts under the shareholder loan to shares in the Company’s capital, subject to the approval of the relevant regulatory authorities and the approval of the Company’s Extraordinary General Assembly. Furthermore, the parties agreed on the conversion rate.
It is worth noting that the PIF is a related party, as it is one of the Company’s substantial shareholders.
The shareholder loan is intended to cover capital expenditures and project costs, and this agreement is being signed as part of the Company’s capital optimization plan, designed to stabilise the Company’s financial and operational positions and optimize its capital structure to enhance its ability to move forward with its growth plans.
For more details about the capital optimization plan, please refer to the Company’s announcement on 05 Rabi Alawwal 1446H (corresponding to 08 September 2024G).
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.