Al-Akaria inks debt-rescheduling agreement with PIF

Saudi Real Estate Co. (Al-Akaria) inked on June 28 an agreement with the Public Investment Fund (PIF) to reschedule an outstanding loan, the company said in a bourse statement.

Under the agreement, Al-Akaria rescheduled the loan to SAR 1.3 billion from SAR 1.5 billion. It will be repaid in nine years and six months with a grace period until the date of the first installment on Jan. 1, 2022.

The loan previous term was 10 years with a grace period until the date of the first installment on Jan. 1, 2018.

The loan restructuring came in line with the company's future cash flows.

The loan was guaranteed by a mortgage and a promissory note, and the deal involved a related party; the PIF, the statement added.

On Sept. 17, 2015, Al-Akaria signed a loan facility agreement with the PIF at SAR 1.5 billion.