Emaar Economic City reschedules $260mln KAEC loan facility

Emaar Economic City reschedules $260mln KAEC loan facility

Emaar, The Economic City (EEC), the master developer of Jeddah-based King Abdullah Economic City, has reached an agreement with leading Saudi bank SABB to reschedule its existing loan of SR976.25 million (260 million) out of the total outstanding SR2 billion ($532 million).

EEC is a consortium headed by Dubai's Emaar Properties and Saudi investors, focusing on building King Abdullah Economic City (KAEC), a special economic zone on Saudi Arabia's Red Sea coast near Jeddah.

One of the largest and most significant privately-run economic projects in the world, KAEC is centered on the establishment of a 185 million sq m integrated city by the Red Sea coast north of Jeddah.

EEC said it had reached a deal with SABB on revising the terms of the sharia compliant outstanding facility as per the following:

The amended terms of the Sharia Compliant Term Loan Facility (Tawarroq) amounting to SR976.25 million, includes a grace period up to June 2023 and a repayment starting from (June 2023 to December 2029) in semi-annual installments.

The main reason for the rescheduling of the loans is for facilitation of the company’s cash flow position and boosting its ability to move forward with its growth plans, said EEC in its filing to the Saudi