AD Ports Group, rated A+ by S&P and AA- by Fitch Ratings, has signed agreements with two UAE banks to refinance its syndicated loan of $2.25 billion at more favourable terms following the US Federal Reserve’s rate cut on Wednesday.
The refinancing will enable the Abu Dhabi-based logistics facilitator to save up to $12 million (44 million drihams) in finance costs over the next 12 months.
Under the refinancing agreements, AD Ports Group’s $2.25 billion syndicated loan obtained in April 2023 has been replaced by an AED 9.2 billion ($2.5 billion equivalent) medium-term facility with a 2.5 years maturity, and a AED 1.0 billion ($273 million equivalent) short-term facility with a 1.5 years tenor.
The two new lending facilities also extend debt maturity to 2026 and beyond.
Martin Aarup, CFO 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.”
(Writing by Brinda Darasha; editing by Seban Scaria)
brinda.darasha@lseg.com
