Emaar Concludes Final Agreements to Reschedule SAR 3.3 Billion in Facilities with Four Banks

Emaar, The Economic City announced the conclusion of final binding agreements to reschedule its existing financing facilities with Alinma Bank, Saudi Awwal Bank, Banque Saudi Fransi, and The Saudi National Bank. The rescheduling agreement covers SAR 3.3 billion, divided into Tranche A and Tranche B, reflecting potential extensions of Tranche B’s maturity date and differences in margin rates and capitalization terms.

As part of the restructuring, the banks will also provide Emaar with a new facility totaling SAR 287.29 million under the binding agreements. This new facility will be integrated into the rescheduling process.

Previous Financing Terms:

• Alinma Bank facilities: Maturity dates on July 9, 2028, and May 24, 2026

• Saudi Awwal Bank facilities: Maturity dates on November 30, 2022, and December 15, 2029

• Banque Saudi Fransi: Maturity date on October 31, 2029

• The Saudi National Bank: Maturity date on August 31, 2021

New Rescheduling Terms: The rescheduled facilities will mature on December 31, 2033, with annual installments due from December 31, 2029, through December 31, 2033. The maturity of Tranche B may be extended further to December 31, 2036, subject to mutual agreement between the banks and the company.

The new facility will be payable in a single bullet payment on June 30, 2026, with the option to extend the maturity by one year to June 30, 2027, provided specific conditions are met.

Collateral Provided:

• Real estate mortgages covering at least 150% of the outstanding principal for the rescheduling, and 175% for the new facility

• Security over company bank accounts

• Promissory notes covering principal and commission amounts

Emaar stated that the rescheduling aims to restructure its existing financial obligations as part of its announced capital optimization plan, which seeks to enhance financial and operational stability and support future growth plans. Additionally, the company aims to strengthen its liquidity position in alignment with its recently adopted strategy and improve financing costs under the modified loan terms.

It is noteworthy that The Saudi National Bank is considered a related party under the Capital Market Authority’s rules, as it is controlled by a major shareholder of the company, the Public Investment Fund.

This development follows Emaar, The Economic City’s previous announcement dated September 8, 2024, on the Saudi Exchange, regarding the signing of a non-binding term sheet on September 7, 2024, with the four banks to facilitate the rescheduling of its existing facilities and to secure new credit facilities.