AD Ports Group signs $2bn financing deal

• Funding 3.7-times oversubscribed with commitments of $7.4bn
• Group represents 13% of the UAE’s non-oil GDP
• Last February AD Ports Group raised over $1bn in IPO

AD Ports Group has signed a $2 billion financing agreement with a syndicate of 13 regional and international banks, it announced in a bourse statement on Tuesday.

Part of Abu Dhabi investment and holding company ADQ, AD Ports Group has a portfolio of ports, economic zones, logistics and digital businesses driving the growth of international trade.

The multi-currency financing facility includes three tranches amounting to EUR600 million ($655.74 million), $620 million, and AED2,863 million ($779.58 million) with a tenure of up to two-and-a-half years.

• AD Ports to invest $200m to develop Safaga Port in Egypt
• AD Ports enters Uzbekistan’s logistics market with new venture
• Abu Dhabi’s Adnoc Gas shares up 18% on debut

The funding requirement was 3.7-times oversubscribed, with commitments of $7.4 billion in total from the participating banks.

Captain Mohamed Juma Al Shamisi, managing director and group CEO at AD Ports Group, said: “The success in raising the $2 billion facility reflects our 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.”

He added that the funds will “reinforce” the company’s strategic development plans.

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First Abu Dhabi Bank and Citibank were the coordinators and book runners, while Mizuho Bank and Abu Dhabi Commercial Bank were the additional book runners. Société Générale and Emirates NBD Capital Limited acted as mandated lead arrangers.

Standard Chartered Bank, HSBC Bank Middle East, BNP Paribas, Bank of China and Crédit Agricole Corporate and Investment Bank were lead arrangers.

Sumitomo Mitsui Banking Corporation and Industrial and the Dubai branch of Commercial Bank of China Limited acted as arrangers.

The facility agent for the agreement is Abu Dhabi Commercial Bank.

AD Ports Group has evolved into a significant driver of economic growth, contributing AED 152.8 billion to the UAE’s GDP, representing 13 percent of the Emirates’ non-oil GDP and creating approximately 373,500 jobs. 

The company recently inked a 30-year concession agreement worth $200 million to develop and operate Egypt’s Safaga port. In addition, two 15-year agreements and a memorandum of understanding were signed, plus three head of terms for ports in Egypt’s Red Sea region and the Mediterranean Sea.

In February last year AD Ports Group raised over $1 billion in an initial public offering.