Dubai’s TECOM Group has secured a new five-year $2.1bn unsecured loan to refinance the partially utilized existing credit facility, a deal that is anticipated to provide the business-park operator with greater financial flexibility and lower its borrowing costs.
Provided at more advantageous terms, the loan will lead to interest expense saving over five years. “The new facility will provide us with greater financial flexibility, lower our borrowing costs and enhance our leverage position,” Abdulla Belhoul, CEO of TECOM Group said.
The facility provides TECOM, having a portfolio consisting of 10 business districts catering to 6 vital knowledge-based economic sectors, with the funds to execute its growth strategy.
The Facility provides drawdown flexibility till maturity and also increases the duration, said a statement from Tecom.
The facility is split into a 4.4 billion dirham term loan, equal to what has already been withdrawn from the previous contract, and a 3.2 billion dirham revolving credit facility, equivalent to the existing undrawn amount, it stated.
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“The new facility demonstrates our ability to leverage our strong financial standing and performance, market reputation, and leadership position within the commercial real estate segment to take advantage of the ample liquidity in the UAE banking sector,” stated Belhoul.
“Furthermore, securing the loan at more favorable terms is a reflection of the confidence the financial community has in our business and growth plans,” he added.
Abu Dhabi Commercial Bank, Emirates NBD Capital and Dubai Islamic Bank are the joint-mandated lead arranger for the new facility.
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