With the PIF Boldly Investing in “Emaar”

“Emaar” company’s accumulated losses  are widely expected to lessen, once the Public Investment Fund “PIF” became a stakeholder in the enterprise, according to “Emaar” the Economic City.

About SR88.68 million were lost. This was based on a total of SR2.668 billion.

That amounts to 31.4 % of the firm’s total capital of SR2.579 billion.

It accounts for 22.8 % of the company’s total assets, due to a drop in the net loss for the year, which was attributed to the exclusion of financing burdens on the debt transferred to the fund, totalling SR90.94 million, in 2020.

Long-term debts’ bill will be reduced from SR5.475 billion to SR2.64 billion, according to the corporation.

The amount of zakat due will increase by SR2.25 million, from SR108.69 million to SR110.94 million.

Increasing its capital by transferring SR2.83 billion in debt, that the firm will owe to the Public Investment Fund (in its role as a creditor) to 283.3 million ordinary shares, in the company, in favor of the fund with a nominal value of SR10 per share.

The additional capital of the corporation will range from 850 million to 1.13 billion shares, with the Public Investment Fund owning 25% of the new capital.

Such a capital increase, according to the corporation, intend to boost the company’s liquidity and credit position, as well as providing stronger solvency, in respect to its financial obligations. Henceforth, increasing the company’s ability to meet its growth targets.

A favorable influence on the company’s present performance metrics and credit position, would allow it to receive a better credit rating and access to a wider range of funding options.

These consequences will have a direct impact on the company’s ability to accomplish its long-term strategic growth objectives and expectations, as well.