AD Ports Group has entered into agreements with two UAE banks to refinance its existing US$2.25 billion syndicated loan on more favourable terms.
This refinancing is expected to help the Group save up to US$12 million in finance costs over the next 12 months.
The new financing arrangements will provide the Group with increased flexibility to strategically time its return to the debt capital markets, aligning with its stated goal of utilizing bonds as the primary long-term funding instrument.
Under the new agreements, the Group’s US$2.25 billion syndicated loan, originally secured in April 2023, has been replaced by a US$2.5 billion medium-term facility with a 2.5-year maturity, and a US$273 million short-term facility with a 1.5-year tenor.
These refinancing deals follow the US Federal Reserve’s decision on Wednesday to initiate its interest rate easing cycle, marking the first rate cut since March 2020.
Additionally, the two new facilities extend the Group’s debt maturity to 2026 and beyond.
“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,” stated Martin Aarup, AD Ports Group Chief Financial Officer.
