Logo ofEmaar The Economic City (Emaar EC)
Emaar The Economic City (Emaar EC) signed, on April 27, bank facilities rescheduling and new facilities agreements. 
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In a statement to Tadawul, the company said that the agreements were signed withAlinma Bank, Saudi Awwal Bank (SAB), Banque Saudi Fransi (BSF) and Saudi National Bank (SNB).
The deals include rescheduling SAR 3.39 billion facilities, which are split into tranche A and tranche B due to the possibility of extending the maturity date for the tranche B facility, the different rates and the capitalization of tranche B.
As part of the rescheduling, a new facility will be made available to the company by the banks under binding agreements, with a total commitment of SAR 287.3 million, to be used as part of the rescheduling.
As for the financing term, the previous terms under the previous financing were as follows:
– July 9, 2028 and May 24, 2026 for the Alinma Bank facilities,
– Nov. 30, 2022 and Dec. 15, 2029 for the SAB facilities,
– Oct. 31, 2029 for BSF and,
– Aug. 31 2021 for SNB.
The new rescheduled term is until Dec. 31, 2033, with repayment instalments due on an annual basis from Dec. 31, 2029 until Dec. 31, 2033, with the possibility to extend the tranche B facility maturity date until Dec. 31, 2036 upon agreement between the company and the banks.
The new facility is a single bullet payment on June 30, 2026 with the possibility of an extension for one additional year until June 30, 2027 subject to satisfaction of certain conditions by the company.
The security provided by the company consists of real estate mortgages with collateral coverage of at least 150% for the rescheduling and 175% (for the new facility) of the outstanding principal amount.
The guarantees also include a security over accounts as well as principal and commission promissory notes.
The purpose for this overall rescheduling is to reschedule the financial indebtedness of the company and unify the terms. This rescheduling comes as part of the company’s announced Capital Optimization Plan, designed to stabilize financial and operational positions and optimize capital structure to enhance its ability to move forward with its growth plans.
Furthermore, to enhance its liquidity position during the anticipated period of revived business and operational growth in line with its recently approved strategy, and to optimize its financing costs throughout the rescheduled period and revised terms of the loan, the statement added.
Meanwhile, the company noted that SNB is a related party pursuant to the rules of the Capital Market Authority (CMA), given that it is controlled by a substantial shareholder of the company, the Public Investment Fund (PIF).
According to data available on Argaam, Emaar EC announced in September 2024 its financial restructuring plan aimed at boosting its ability to move forward with growth plan.
The plan includes bank facilities rescheduling, as the company signed a non-binding term sheet, on Sept. 7, to roll over its existing facilities with Alinma Bank, Saudi Awwal Bank (SAB), Banque Saudi Fransi (BSF), and Saudi National Bank (SNB).
Logo ofEmaar The Economic City (Emaar EC)
Emaar The Economic City (Emaar EC) signed, on April 27, bank facilities rescheduling and new facilities agreements.
For more news on listed companies
In a statement to Tadawul, the company said that the agreements were signed withAlinma Bank, Saudi Awwal Bank (SAB), Banque Saudi Fransi (BSF) and Saudi National Bank (SNB).
The deals include rescheduling SAR 3.39 billion facilities, which are split into tranche A and tranche B due to the possibility of extending the maturity date for the tranche B facility, the different rates and the capitalization of tranche B.
As part of the rescheduling, a new facility will be made available to the company by the banks under binding agreements, with a total commitment of SAR 287.3 million, to be used as part of the rescheduling.
As for the financing term, the previous terms under the previous financing were as follows:
– July 9, 2028 and May 24, 2026 for the Alinma Bank facilities,
– Nov. 30, 2022 and Dec. 15, 2029 for the SAB facilities,
– Oct. 31, 2029 for BSF and,
– Aug. 31 2021 for SNB.
The new rescheduled term is until Dec. 31, 2033, with repayment instalments due on an annual basis from Dec. 31, 2029 until Dec. 31, 2033, with the possibility to extend the tranche B facility maturity date until Dec. 31, 2036 upon agreement between the company and the banks.
The new facility is a single bullet payment on June 30, 2026 with the possibility of an extension for one additional year until June 30, 2027 subject to satisfaction of certain conditions by the company.
The security provided by the company consists of real estate mortgages with collateral coverage of at least 150% for the rescheduling and 175% (for the new facility) of the outstanding principal amount.
The guarantees also include a security over accounts as well as principal and commission promissory notes.
The purpose for this overall rescheduling is to reschedule the financial indebtedness of the company and unify the terms. This rescheduling comes as part of the company’s announced Capital Optimization Plan, designed to stabilize financial and operational positions and optimize capital structure to enhance its ability to move forward with its growth plans.
Furthermore, to enhance its liquidity position during the anticipated period of revived business and operational growth in line with its recently approved strategy, and to optimize its financing costs throughout the rescheduled period and revised terms of the loan, the statement added.
Meanwhile, the company noted that SNB is a related party pursuant to the rules of the Capital Market Authority (CMA), given that it is controlled by a substantial shareholder of the company, the Public Investment Fund (PIF).
According to data available on Argaam, Emaar EC announced in September 2024 its financial restructuring plan aimed at boosting its ability to move forward with growth plan.
The plan includes bank facilities rescheduling, as the company signed a non-binding term sheet, on Sept. 7, to roll over its existing facilities with Alinma Bank, Saudi Awwal Bank (SAB), Banque Saudi Fransi (BSF), and Saudi National Bank (SNB).
