RIYADH: Abu Dhabi-based AD Ports Group has closed $2 billion worth of corporate funding facility with a syndicate of 13 regional and international banks in better pricing terms as the banking sector showed potent trust in the A+ credit-rated logistics firm.
With a tenure of up to two and a half years, the facility is split into three multi-currency tranches – €600 million ($655 million), $620 million, and 2,863 million dirhams ($778 million).
The company said the funding requirement of $2 billion was oversubscribed by 3.7 times, with commitments of US$7.4 billion in total received from the participating banks.
“The success in raising the $2 billion facility reflects our profitable and enduring business as well as underscoring AD Ports Group’s strong financial position and the confidence that the banking sector has in our organization’s robust long-term financial performance,” said ADPG’s Managing Director and Group CEO Mohamed Al Shamisi.
AD Ports Group said it closed the $2 billion facility in improved financing terms when compared with the $1 billion rapid credit facility the company secured in 2021.
This comes as AD Ports Groups has received a positive credit rating of A+ from global rating agencies such as Fitch and S&P Global.
The lead coordinators of the facility were the First Abu Dhabi Bank and Citibank, whereas Mizuho Bank and Abu Dhabi Commercial Bank were the additional book runners.
In addition, 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.
As for Sumitomo Mitsui Banking Corp. and Industrial and Commercial Bank of China Limited, Dubai Branch, they operated as arrangers.
Al Shamisi added: “This recent announcement also goes further to reinforce our ambitious strategic development plans and the UAE’s wise leadership’s vision for economic diversification.”
Last month, AD Ports Group signed a 30-year concession agreement worth $200 million to develop and operate Egypt’s Safaga Port.
AD Ports Group signed the agreement with the Red Sea Ports Authority, making the Safaga Port the “first internationally operated port in the Upper Egypt region,” added the statement.
“AD Ports Group’s significant concession agreement with the Red Sea Port Authority for the development of Safaga Port has the potential to play a major role in the global supply chain, evidencing, once again that our key strategic partnerships in Egypt drive the advancement of the Group’s portfolio of value-added investments,” stated Al-Shamisi in an official statement at the time.
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 were also signed, the statement said.
