Emaar EC extends PIF debt-to-equity conversion deal until year-end

Emaar the Economic City (Emaar EC) extended the maturity of its debt-to-equity conversion agreement with the Public Investment Fund (PIF) until Dec. 31, 2025, instead of Sept. 7, 2025, the company said in a statement to Tadawul.

According to Argaam data, the company in March amended its board recommendation to raise capital by converting outstanding debt owed to PIF into new ordinary shares, increasing the value of debt to be converted from SAR 3.97 billion to SAR 4.12 billion. The increase reflected accrued interest, fees, and commissions as of Dec. 31, 2024.

On March 9, 2025, the company signed an addendum to the agreement with PIF to reflect the new terms, including the debt conversion ratio.

The original agreement, signed in September 2024, stipulated that the deal would terminate if the conditions precedent were not met within one year of signing or within six months of agreeing on the conversion ratio, whichever came first.