Emaar EC reschedules Murabaha financing deal with BSF worth SAR 537.5 mln

logo of Emaar the Economic City (Emaar EC)

Emaar The Economic City (Emaar EC) rescheduled a Murabaha financing agreement with Banque Saudi Fransi (BSF) revising the terms of the facility, according to a bourse filing.

The amended terms amounted to SAR 537.5 million, to be restructured through a seven-year repayment plan (2023-2029) with a three-year grace period, in semi-annual installments.

The agreement will include additional facilities at SAR 50 million to hedge against interest rates.

The rescheduling agreement aims to improve the company’s cash flows and carry out growth plans.

The facility tenor extended from March 2017 to April 2023 before restructuring and from March 2017 to October 2029 after the rescheduling agreement.

The loan facilities were guaranteed by a land plot in King Abdullah Economic City (KAEC) and promissory notes.

No related parties were included in the deal, the statement added.

In May 2015, Emaar EC secured a SAR 1 billion Murabaha loan from Banque Saudi Fransi to develop land plots at KAEC, Argaam reported.