Construction

Emaar EC reschedules loan with consortium of Saudi banks

April 29, 2025, 2:40 PM

Emaar EC is the master planner and primary infrastructure developer of KAEC, a 185sq km city north of Jeddah

Deal to reschedule $904m
New credit facility with banks
Debt to mature in 2033

Emaar the Economic City (Emaar EC), the developer of King Abdullah Economic City, has signed an agreement with four Saudi banks to reschedule a total of SAR3.4 billion ($904 million) in existing financing.

The agreement also includes securing a new credit facility of SAR287 million from Alinma Bank, Saudi Awwal Bank, Banque Saudi Fransi and Saudi National Bank, Emaar EC said in a filing to the Saudi stock exchange.

Originally scheduled to mature between 2021 and 2029, the rescheduled debt will now mature on December 31, 2033, with repayments beginning in 2029.

Emaar EC is the master planner and primary infrastructure developer of King Abdullah Economic City (KAEC), a 185sq km city north of Jeddah which includes King Abdullah Port and KAEC Industrial Valley.

It is 25 percent owned by the Public Investment Fund, its largest shareholder.

The rescheduled debt is divided into tranche A and tranche B, and the agreement allows for the potential extension of the tranche B facility’s maturity date until December 2036.

The new loan facility is a one-time payment due in June 2026, with the potential for a one-year extension to June 2027, the bourse filing said.

“This rescheduling comes as part of the company’s announced capital optimisation plan, designed to stabilise the company’s financial and operational positions and optimise its capital structure to enhance its ability to move forward with its growth plans,” Emaar EC said in the filing.

The latest deal comes after Emaar EC initiated a SAR8.7 billion turnaround plan in September last year, a month after its 2024 first-half losses showed an almost five-fold increase from the previous year.

Emaar EC is now only affiliated with Dubai-based Emaar Real Estate Development, according to a stock exchange filing in 2021. The shares, which are listed on the Tadawul, closed at SR15.40 on Monday, down 17 percent year to date.