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  • 05-04-23

    AD Ports Group Secures USD2 Billion Corporate Funding Facility with Strong Bank Support

    (MENAFN) AD Ports Group, a logistics firm based in Abu Dhabi, has successfully closed a corporate funding facility worth USD2 billion with a syndicate of 13 regional and international banks. The facility has a tenure of up to two and a half years and is split into three multi-currency tranches: €600 million (USD655 million), USD620 million, and 2,863 million dirhams (USD778 million). The company received commitments of USD7.4 billion in total from the participating banks, indicating strong support from the banking sector. The successful raising of the USD2 billion facility reflects the company's profitable and enduring business, as well as its strong financial position, according to ADPG’s Managing Director and Group CEO Mohamed Al Shamisi.

    AD Ports Group has received a positive credit rating of A+ from global rating agencies such as Fitch and S&P Global, which further supports the company's strong financial position. The lead coordinators of the facility were the First Abu Dhabi Bank and Citibank, while Mizuho Bank and Abu Dhabi Commercial Bank were the additional book runners. The deal's mandated lead arrangers were Société Générale and Emirates NBD Capital Limited. The Standard Chartered Bank, HSBC Bank Middle East, BNP Paribas, Crédit Agricole Corporate and Investment Bank, and Bank of China were lead arrangers, while Sumitomo Mitsui Banking Corp. and Industrial and Commercial Bank of China Limited, Dubai Branch, operated as arrangers.

    The funding requirement of USD2 billion was oversubscribed by 3.7 times, which was a significant improvement compared to the USD1 billion rapid credit facility AD Ports Group secured in 2021. The successful closure of the corporate funding facility in improved financing terms is a testament to the company's robust long-term financial performance and the confidence that the banking sector has in AD Ports Group.

    AD Ports Group's strong financial position and ambitious strategic development plans align with the UAE's wise leadership's vision for economic diversification, according to Al Shamisi. In addition, the company recently signed a 30-year concession agreement worth USD200 million to develop and operate Egypt's Safaga Port. The agreement with the Red Sea Ports Authority makes Safaga Port the first internationally operated port in the Upper Egypt region. AD Ports Group's significant concession agreement with the Red Sea Port Authority has the potential to play a major role in the global supply chain, further driving the advancement of the company's portfolio of value-added investments, according to Al-Shamisi. The company also signed two additional 15-year agreements, a memorandum of understanding, and three heads of terms concerning ports located in Egypt's Red Sea region and the Mediterranean Sea.

    MENAFN05042023000045014228ID1105947599

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