Logo of King Abdullah Economic City
Emaar the Economic City (Emaar EC) submitted, on May 24, 2021, a request to raise its capital through loan conversion to the Capital Market Authority (CMA).
Future developments, if available, will be announced in a timely manner, the company said in a bourse filing.
Emaar EC’s board of directors recommended on May 5, 2021, a capital increase through converting a loan owed by the company to the Public Investment Fund (PIF) worth SAR 2.83 billion, according to data compiled by Argaam.
On Aug. 31, 2020, Emaar EC entered into a share subscription agreement, under which the Ministry of Finance (MoF) transferred a part of the loan due to the ministry – following the loan agreement with MoF on May 23, 2011 and amended on June 4, 2015 – to PIF for a total amount of SAR 2.83 billion.
Following the subscription agreement, PIF entered as an investor in the company through issuance of 283.33 million new shares in the company, at the nominal value of SAR 10 per share, against the entire debt owed by the company to PIF pursuant to the novation.
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