Monday, September 20, 2021

Emaar The Economic City debt conversion gives Saudi PIF 25% stake

DUBAI (Reuters) – Saudi Arabia’s sovereign wealth fund PIF will hold a 25% stake in Emaar The Economic City (EEC) after the company issues 283.3 million new ordinary shares to PIF in lieu of the fund repaying the Saudi finance ministry a loan for EEC, EEC said on Thursday.

EEC, linked to Dubai property developer Emaar and working on Saudi Arabia’s King Abdullah Economic City, will now owe the 2.833 billion riyal ($755.39 million) loan to PIF instead of the finance ministry following the capital increase via debt conversion, the company said in a bourse filing.

The new shares of EEC being issued to PIF will have a nominal value of 10 riyals per share, a nearly 21% discount to the share’s closing price of 12.64 riyals on Thursday.

The deal will make PIF EEC’s biggest shareholder, according to Refinitiv data, with the current biggest investor holding 16.43%.

$1 = 3.7504 riyals

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