Emaar renews SAR 1 bn shareholder loan from PIF: Emaar, the Economic City (EEC) inked a binding amendment and restatement agreement with the Public Investment Fund (PIF) for a SAR 1 bn convertible shareholder loan to cover project costs, according to a disclosure to Tadawul. The PIF first granted the loan to EEC in February 2023, which the construction company fully drew down.

New expiry + terms: The loan will now expire in May 2026, with the repayment structured as a single bullet payment due in March 2027. As collateral, EEC pledged real estate valued at no less than SAR 1.5 bn, along with promissory notes securing both the principal and commission.

Tied by a conversion clause: The fund, which currently owns 25% of EEC, retains the right to convert outstanding loan balance into shares — but the move would be subject to regulatory and shareholder approvals.

All part of a capital optimization strategy: Last year, EEC transferred its SAR 2.9 bn loan from the Finance Ministry to the PIF as part of a broader capital optimization plan, granting the company a one-year grace period until June 2025. The restructuring also included a SAR 1.1 bn shareholder loan from PIF, with both loans set to be fully converted into equity, increasing PIF’s stake in EEC.

ALSO- EEC’s board proposed a 49.7% capital reduction last year to offset SAR 5.6 bn in accumulated losses in 1H 2024, followed by a SAR 3.9 bn capital increase to cover liabilities, while also working to reschedule SAR 3.8 bn in loans with major Saudi banks under a single term sheet.

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