AD Ports Group has announced the signing of a General Corporate Facility agreement with a syndicate of 13 regional and international banks.
The multi-currency facility, equivalent to around $2 billion, includes three tranches amounting to €600 million ($655.8 million), $620 million, and AED2.8 billion ($762.4 million) with a tenure of up to 2.5 years.
The demand for the facility was high, with commitments of $7.4 billion in total from the participating banks.
“The funding requirement was therefore 3.7x oversubscribed, demonstrating the confidence that the banking sector has in AD Ports Group’s financial health and future prospects,” the company said in a statement.
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In addition to the demand for this new syndicate facility, the Group managed to improve pricing compared with the $1 billion revolving credit facility (RCF) that the Group had secured in 2021.
Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “The success in raising the $2 billion facility reflects our profitable and enduring business as well as underscoring AD Ports Group’s strong financial position and the confidence that the banking sector has in our organisation’s robust long-term financial performance.”
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According to the company, Abu Dhabi Bank and Citibank were first the co-ordinators and bookrunners, while Mizuho Bank and Abu Dhabi Commercial Bank were the additional bookrunners.
Société Générale and Emirates NBD Capital Limited acted as Mandated Lead Arrangers.
Standard Chartered Bank, HSBC Bank Middle East, BNP Paribas, Crédit Agricole Corporate and Investment Bank and Bank of China were Lead Arrangers while Sumitomo Mitsui Banking Corporation and Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch acted as Arrangers.
The Facility Agent for the agreement is Abu Dhabi Commercial Bank.
This announcement comes a few weeks after AD Ports announced the signing of a 30-year concession agreement with the Red Sea Ports Authority to develop and operate a multi-purpose port in Safaga, Egypt.
