AD Ports Group recently announced that it has signed agreements with two UAE banks to refinance its syndicated loan of $2.25 billion with more favorable terms. This would enable the group to save up to $12 million in finance costs over the next 12 months.
AD Ports Group’s refinancing transactions followed Wednesdayโs U.S. Federal Reserve decision to start its interest rate easing cycle, marking the first rate cut since March 2020.
The new facilities will give AD Ports Group the flexibility to optimally time its return to the debt capital markets in line with its stated strategy to utilize bonds as the predominant long-term funding vehicle.
“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 companyโs needs in the debt capital markets at longer tenors and at competitive rates in line with our capital structure,โ stated Martin Aarup, AD Ports Group CFO.
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Under the agreements, the groupโs $2.25 billion syndicated loan obtained in April 2023 has been replaced by a $2.5 billion medium-term facility with a 2.5-year maturity and a $273 million short-term facility with a 1.5-year tenor.
The two new lending facilities also extend debt maturity to 2026 and beyond.
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