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AD Ports Group refinanced and upsized its revolving credit facility to USD 2.1 bn, up from USD 1 bn, with two equal tranches denominated in AED and USD, according to a statement. The maturity of the facility was extended from 2026 to 2028, with an option for further extension until 2030.
The new facility was 2.5x oversubscribed after receiving interest from a wide range of local, regional, European, Asian, and international banks. The new facility also doubles AD Ports’ banking pool from nine to 18 banks.
This is the second refinancing for AD Ports this year: AD Ports signed agreements with two UAE banks in September to refinance its syndicated loan of USD 2.25 bn, in a bid to take advantage of the interest rate easing cycle.
It also comes on the heels of another rate cut: The Central Bank of the UAE cut interest rates by 25 bps in line with the US Federal Reserve in its meeting last week. The base rate applicable to the overnight deposit facility is now at 4.4%, while the interest rate applicable to borrowing short-term liquidity from the CBUAE has been kept at 50 bps above the base rate for all standing credit facilities.
The firm has a good credit rep: AD Ports is rated A+ and gcAAA by S&P, and AA- with a stable outlook by Fitch. Earlier this month, Moody’s assigned AD Ports an initial A1 credit rating with a stable outlook, marking the first time the agency has rated the group. The agency noted the group’s strong infrastructure, business resilience, and prudent financial policies.
OTHER DEBT NEWS-
Investment platform Shuaa Capital finalized an agreement with its senior creditor to restructure AED 208 mn in outstanding facilities, according to a press release (pdf). The agreement introduces a 12-month temporary waiver for principal installments, followed by an amendment and extension of the existing loan terms, with prepayments linked to specific triggers. The company has addressed over AED 1.2 mn in liabilities since the beginning of 2024, Shuaa Capital CEO Wafik Ben Mansour said in the statement.
In context: Shuaa had said it reached an agreement with one of its main creditors last week. The firm anticipates additional key agreements to be finalized this month, in preparation for its planned issuance of AED 642.5 mn in mandatory convertible bonds.
