Today, Wednesday, the Saudi Real Estate Company announced it has received a letter from the Public Investment Fund in which stated that a transfer agreement had been concluded between the Public Investment Fund and the Ministry of Finance in Saudi Arabia for the purpose of transferring the residual balance of the Fund’s loan amounting to approximately 1,307 billion riyals, and the related rights and obligations towards the Ministry of Finance and requesting the authorization to execute the remittance.
The Fund’s agreement with the Ministry of Finance comes after last year’s agreement to schedule a loan for the Saudi Real Estate Company.
At the beginning of July 2020, the Saudi Real Estate Company announced the modification of the loan agreement of 17 September 2015 with the Public Investment Fund, to adapt to the future cash flows of the company.
And he indicated in a previous statement, that the value of the loan was adjusted from 1.5 billion riyals to approximately 1.307 billion riyals.
The funding period after the renegotiation is 9 years and 6 months with a grace period up to the first installment payment date at the beginning of January 2022, compared to the previous 10 year payment period with a grace period up to the payment date of the first installment in early January 2018.
It should be noted that the guarantee offered for the renegotiated loan is a mortgage and a bill of exchange.
Saudi Real Estate stated in a statement on “Tadawul Saudi”, which will announce any future developments at the moment.
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