The multi-currency facility is divided into three tranches, amounting to €600 million, $620 million, and AED 2,863 million, with a tenure of up to 2.5 years.
According to AD Ports Group, the demand for the facility was overwhelming, with commitments of $7.4 billion in total from the participating banks, indicating the banking sector’s confidence in AD Ports Group’s financial health and future prospects.
The company said that its strong financial position is reaffirmed by its A+ credit rating from Fitch and S&P Global, which were both post-listing and post-recent announcements of acquisitions.
First Abu Dhabi Bank and Citibank were the coordinators and bookrunners of the deal, while Mizuho Bank and Abu Dhabi Commercial Bank were additional bookrunners. Société Générale and Emirates NBD Capital Limited acted as Mandated Lead Arrangers.
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 Corporation and Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch acted as arrangers.
Abu Dhabi Commercial Bank will be the facility agent for the agreement.
“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 organisation’s robust long-term financial performance,” Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said.
He further stated that this announcement reinforces the ambitious strategic development plans of the group.
The funding is being announced in the wake of the company’s recent concession agreement to develop and operate a multi-purpose port in Safaga in Egypt, and two 15-year agreements, a Memorandum of Understanding (MoU) and three Head of Terms (HoT) concerning ports located in Egypt’s Red Sea region and the Mediterranean Sea, enabling a major expansion of the group’s activities into Egypt.
These agreements allow for expanded access to multipurpose terminals, cruise routes, and logistics capabilities in Safaga, Ain Sokhna, Port Said, Hurghada, Sharm El Sheikh, and Al Arish.
Last month, the port operator also signed a deal with the representatives of the Republic of Congo for a new multipurpose terminal in Pointe-Noire.
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