Abu Dhabi Ports signs debt refinancing agreements worth $2.25 billion

Abu Dhabi (Etihad)
Abu Dhabi Ports Group announced that an agreement was signed with two Emirati banks to refinance their joint loan worth $2.25 billion on more favorable terms, which could achieve savings of up to 44 million dirhams, equivalent to “12 million dollars,” in financing costs over the loan. the next 12 months.
The new resources that the group will receive will give the group sufficient flexibility in determining the right time to return to the debt market, in line with the announced strategy to benefit from bonds as a long-term financing tool .
Under these agreements, a medium-term credit facility worth 9.2 billion dirhams was replaced by the combined loan received by the group worth $2.25 billion in April 2023, equivalent to “2.5 billion dollars,” with a maturity period of two and a half years, and a short-term credit facility worth 1 billion dirhams, equivalent to “2.5 billion dollars.” “273 million US dollars” with a maturity period of one and a half years.
The refinancing agreements were finalized after the US Federal Reserve’s decision on Wednesday to start a cycle of interest rate cuts, the first interest rate cut since March 2020.
The new loan facilities will extend the debt maturity period to 2026 and beyond.
Martin Arup, Chief Financial Officer, Abu Dhabi Ports Group, said: “The new refinancing agreements give us greater financial flexibility, as well as allowing borrowing costs to be significantly reduced, as well as giving us the best time and flexibility to take advantage of it. interest rate easing cycle to refinance the company’s needs in the market.” Pay off debt over a longer period of time and at competitive rates based on our capital structure.
Abu Dhabi Ports Group was rated “A+” and “gcAAA” by S&P, and rated “AA-” with a stable outlook by Fitch.