The statement said, “Extending the maturity of debts with a low margin allows the group to benefit from lower interest rates.”
The signing of these agreements came in the wake of the US Federal Reserve’s decision on Wednesday to begin its interest rate easing cycle, cutting them by 50 basis points, the first interest rate cut since March 2020.
The statement said that the new refinancing facilities will contribute to extending the maturity period. Debts Until 2026 and beyond.
Under these agreements, the syndicated loan obtained by Abu Dhabi Ports Group Worth $2.25 billion in April 2023 with a medium-term credit facility worth AED 9.2 billion (equivalent to $2.5 billion) with a maturity of two and a half years, and a short-term credit facility worth AED 1 billion (equivalent to $273 million) with a maturity of one and a half years.
The new facilities obtained will give the group sufficient flexibility to determine the ideal timing for its return to the debt market, in line with its announced strategy to use bonds as a long-term financing tool, according to the statement.
“The new refinancing agreements give us greater financial flexibility, allow us to significantly reduce our borrowing costs, and give us the time and solvency to take advantage of the easing cycle to eventually refinance the company’s debt needs in the debt market over longer terms and at competitive rates in line with our capital structure,” said Mart Arup, Chief Financial Officer, Abu Dhabi Ports Group.
