Abu Dhabi – Mubasher: AD Ports Group has signed agreements with two UAE lenders to refinance its syndicated loan of $2.25 billion, according to a press release.
The ADX-listed group aims to renew the loan at more favourable terms that would enable the group to save up to AED 44 million ($12 million) in finance costs over the next 12 months.
The new facilities will allow the group to optimally time its return to the debt capital markets and utilise bonds as the predominant long-term funding vehicle.
The $2.25 billion syndicated loan, which was secured in April 2023, has been replaced by an AED 9.20 billion ($2.50 billion) medium-term facility with a 2.50 years maturity as well as AED 1 billion ($273 million) short-term facility with a tenor of one and a half years.
Meanwhile, the two new lending facilities extend debt maturity to 2026 and beyond.
Martin Aarup, Group CEO of AD Ports, said: “The new refinancing agreements not only give the group greater financial flexibility and allow us to significantly lower our financing costs, but also they give us the timing flexibility and ability to optimally take advantage of the easing interest rates cycle to eventually refinance the company’s needs in the debt capital markets at longer tenors and at competitive rates in line with our capital structure.”
AD Ports was assigned a rating of ‘A+’ and ‘gcAAA’by S&P and ‘AA-‘ by Fitch, with a stable outlook.
In the first half (H1) of 2024, AD Ports recorded a 25% year-on-year (YoY) hike in net profit to AED 839 million, compared to AED 673 million.
