Riyadh – Mubasher: Emaar The Economic City has entered into a share subscription agreement with Dayim Modern Real Estate Management Company, ME Royal Capital LLC, ME Partners Capital LLC, ME Strategic Investments LLC, ME Holdings LLC, Emaar Middle East LLC, and the Public Investment Fund (PIF).

Emaar said discussions are ongoing between the Ministry of Finance (MoF) and the PIF regarding novation of part of the loan due to MoF pursuant to the loan agreement concluded on 23 May 2011 and amended on 4 June 2015 with MoF to PIF at a total value of SAR 2.833 billion, according to a bourse filing on Tuesday.

Under the subscription deal, the PIF will enter as an investor in Emaar through the issuance of 283,333 million new shares in Emaar, at the nominal value of SAR 10 per share, against the entire debt owed by Emaar to PIF pursuant to the novation.

Furthermore, each of Dayim Modern Real Estate Management Company, ME Royal Capital LLC, ME Partners Capital LLC, ME Strategic Investments LLC, ME Holdings LLC, and Emaar Middle East LLC provided certain warranties to PIF pursuant to the subscription agreement.

The subscription deal, subject to completion of all required regulatory procedures, comprises some conditions, including the completion of the novation, the statement concluded.