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Power and Water Utility Company for Jubail and Yanbu (Marafiq) announces the signing of an asset lease agreement with the Royal Commission for Jubail and Yanbu

2083
MARAFIQ
1.85 %
1444/10/17     07/05/2023 08:55:31

Element ListExplanation
Announcement Detail Subject to the Council of Ministers’ Resolution No. 57 dated 3/28/1420 AH corresponding to 7/12/1999 states that that Royal Commission for Jubail and Yanbu (“RC”) shall lease the basic equipment of service in Jubail and Yanbu industrial cities to Marafiq, provided that Marafiq will own these assets at the end of the lease term,

Marafiq executed Master Lease Agreement with RC on 18/9/1427 corresponding to 11/10/2006 (“MLA”) where Marafiq received the basic equipment of service from RC during Marafiq’s foundation era.

As per the MLA, all the future lease of the basic equipment of service shall be governed by the same mechanism mentioned in the MLA and the rent will be commenced at the starting date of operating the relevant service assets, provided that the rent is commensurate with the percentage of actual commercial operation of those service assets. Accordingly. Marafiq executed number of lease agreements with RC in its expansion cities in Jubail and Yanbu to meet the future demands of utility services or to increase the reliability of its business towards all its customers.

For more information please refer to the IPO prospectus issued by Marafiq in paragraph: “Unsigned finance lease contracts with the Royal Commission for Jubail and Yanbu” page No. 191.

Based on the above, Marafiq announces the execution of new service asset lease agreement with RC covering group some assets in Yanbu Industrial City.

Date of Announcement of the Award: 28/3/1420 corresponding to 7/12/1999

Contract Subject Matter: Asset Lease with Royal Commission for Jubail and Yanbu

Date of Signing the Contract: 07/05/2023

Contract Value: 45,610,108.28 Saudi Riyal

Contract Details: Asset Lease with Royal Commission for Jubail and Yanbu for a group of assets in Yanbu Industrial City.

Contract Duration: 25 years from the date receives each of those assets.

Financial Impact and the Relevant Period: It is expected that the annual rental cost of these assets, in the event of full commercial operation, will be 1,824,404.31 Saudi riyals for a period of 25 years.

Related Parties: Royal Commission for Jubail and Yanbu

Additional Information:

• These assets will enable Marafiq to increase the reliability of its business towards all its customers, in addition to meeting the future demands of utility services.

• The date of award is the Council of Ministers’ resolution dated 3/28/1420 corresponding to 7/12/1999.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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Last Price 49.65
Net Change 0.9 (+1.85%)
Value Traded (Sar) 37,777,651.55
Volume Traded 765,075
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