AD Ports boosts liquidity with upsized credit facility

The UAE’s AD Ports Group has refinanced and upsized its existing revolving credit facility, more than doubling its size to enhance its liquidity position. 

The credit facility was increased from $1 billion to $2.13 billion, incorporating tranches in both AED and USD to optimise financing costs by improving interest margins, the UAE state-run Wam news agency reported.

Additionally, the maturity date of the facility was extended from 2026 to 2028, with an option to extend further to 2030.

The new facility attracted strong interest from local, regional, European, Asian and international banks, resulting in oversubscription of more than 2.5 times.

Consequently, AD Ports Group expanded its banking network from nine to 18 lenders, gaining access to a larger funding pool.

Martin Aarup, group CFO of AD Ports Group, said that the refinancing enhanced the company’s ability to optimise financing costs and reinforced its liquidity position to support short- and medium-term growth objectives.

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Last month, the company reported that annual net profit rose 11 percent year on year to AED445 million ($121.2 million) in the third quarter of 2024 as revenue reached a record high of AED4.7 billion.

The port operator is rated “AA-” with a stable outlook by Fitch and A1 with a stable outlook by Moody’s.