Emaar The Economic City (EEC), the master developer of the Jeddah-based King Abdullah Economic City, has announced the signing of a term loan facility agreement of up to SR1 billion ($266 million) with one of its substantial shareholders, the Public Investment Fund (PIF).
The 18-month PIF loan guarantees security over certain real estate assets within King Abdullah Economic City with a market value of no less than $400.5 million, stated EEC in its filing to Saudi bourse Tadawul.
The master developer said that the loan facility will be used to boost strategic plans and develop projects mainly aimed at transforming KAEC into a leading industrial, commercial and tourism hub for the western Coast of Saudi Arabia.
As per the deal inked with PIF, EEC has agreed to repay the loan through a single bullet payment on maturity. The company has also provided promissory notes pursuant to the agreement.
