AD Ports Group has signed agreements with two UAE banks to refinance its syndicated loan of $2.25 billion at more favourable terms, enabling it to save up to AED44 million ($12 million) in finance costs over the next 12 months. 

 

The new facilities will give the group 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Under the agreements, the group’s $2.25 billion syndicated loan obtained in April 2023 has been replaced by an AED9.2 billion medium-term facility with a 2.5 years maturity, and a AED1 billion short-term facility with a 1.5-year tenure.

 

Extending debt maturity

The refinancing transactions followed US Federal Reserve Bank decision to start its interest rate easing cycle, which was the first rate cut since March 2020.

 

The two new lending facilities also extend debt maturity to 2026 and beyond.

 

Martin Aarup, AD Ports Group Chief Financial Officer, said: “The new refinancing agreements will not only give the group greater financial flexibility and allow us to significantly lower our financing costs, but also 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 tenures and at competitive rates in line with our capital structure.”

 

AD Ports Group is rated “A+” & “gcAAA” by S&P and “AA-” with Outlook stable by Fitch.--TradeArabia News Service