Emaar EC eyes $3bn capital hike; awaits shareholders' nod
DUBAI, September 6, 2021
Emaar EC, the master developer of King Abdullah Economic City (KAEC) in Saudi Arabia, said its board of directors has recommended a 33 per cent increase in its capital, thus taking the total from SR8.5 billion ($2.26 billion) to SR11.33 billion ($3.01 billion).
The capital hike will be effected through settlement of the SR2.83 billion debt it owes to the Public
Investment Fund (PIF), said Emaar EC in its filing to the Saudi Tadawul.
The move is aimed at boosting the company’s liquidity and credit position in order to provide greater solvency in relation to its financial obligations, and to help improve the company’s ability to achieve its growth goals.
KAEC is the gateway to the Red Sea market, the fastest growing developing market in the world today, with direct access to King Abdullah Port and the award-winning Industrial Valley manufacturing and logistics hub.
Emaar EC said the approval plan will be put to shareholders' vote during the extraordinary general meeting (EGM) to be held on September 12.
The master developer has already invested SR18 billion in to the project.
With a total development area of 173 sq km, KAEC is located along the coast of the Red Sea, around 100 km north of Jeddah, the commercial hub of Saudi Arabia.TradeArabia News Service
