Dubai: The AD Ports Group has upsized its existing revolving credit facility to $2.12 billion from $1 billion, as the Abu Dhabi entity looks to optimise financing costs. The company, incidentally, was one of the first big league UAE businesses to refinance its debts after the US Federal reserve announced its first interest rate cut in September.
In the latest deal, AD Ports Group has also gone for a further refinancing of its terms on the $2.12 revolving credit. This would lead to an improvement in interest margins and extends the maturity of the credit facility from 2026 to 2028, plus an option to extend further until 2030.
The new facility garnered ‘significant interest’ from local, regional, European, Asian, and international banks, leading to oversubscription of over 2.5 times the facility amount. “With the new RCF in place, AD Ports Group will broaden its banking pool from nine to 18 banks, enhancing its financial flexibility and access to a larger funding pool,” said a statement.
“This refinancing strengthens our liquidity position to support our short and medium-term growth objectives,” said Martin Aarup, Group Chief Financial Officer, AD Ports Group. “Additionally, the extension of the revolving credit facility maturity to 2028, with the potential to extend until 2030, provides us with greater financial flexibility and thus better planning options.”
