AD Ports Group has announced it has signed agreements with two UAE banks to refinance its syndicated loan of USD 2.25 billion at more favourable terms. This, says the Group, would enable it to save up to AED 44 million (USD 12 million) in finance costs over the next 12 months.
The two new lending facilities also extend debt maturity to 2026 and beyond.
In a press release, AD Ports Group said the agreements would give it flexibility to “optimally time its return to the debt capital markets in line with its stated strategy to utilise bonds as the predominant long-term funding vehicle”.
“Under the agreements, the Group’s USD 2.25 billion syndicated loan obtained in April 2023 has been replaced by an AED 9.2 billion (USD 2.5 billion equivalent) medium-term facility with a 2.5 years maturity, and a AED 1.0 billion (USD 273 million equivalent) short-term facility with a 1.5 years tenor,” added the Group.
The Group also stated that its refinancing transactions came in light of Wednesday’s US Federal Reserve Bank decision to start its interest rate easing cycle.
Commenting, Martin Aarup, AD Ports Group Chief Financial Officer, 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.”