Riyadh – Mubasher: The board of Emaar The Economic City recommended a capital increase worth SAR 2.83 billion to endorse liquidity, credit position, and ability to achieve growth objectives.
The capital raise will be carried out by converting a loan that will be owed by the company to the Public Investment Fund (PIF), according to a bourse disclosure on Thursday.
Emaar The Economic City has appointed Saudi Fransi Capital as the financial advisor for this capital increase.
Approvals from official authorities as well as the extraordinary general assembly meeting are still required to proceed with the raise through debt conversion.
Last September, the listed firm said discussions were ongoing between the Ministry of Finance (MoF) and the PIF regarding novation of part of the loan due to MoF pursuant to a loan agreement with MoF to PIF at a total value of SAR 2.833 billion.