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Dubai business park operator TECOM Group has secured refinancing for an existing loan facility at more favourable terms.
It has entered a new five-year 7.6 billion dirhams ($2.06 billion) unsecured loan facility replacing the existing partially utilised term loan of AED 7.6 billion, the company said in a statement on Thursday.
The facility, which provides drawdown flexibility till maturity, is split into an AED 4.4 billion term loan, which is equivalent to the amount that has already been drawn down from the previous agreement, and an AED 3.2 billion revolving credit facility, equivalent to the existing undrawn amount.
Abdulla Belhoul, CEO, said: “The new facility will provide us with greater financial flexibility, lower our borrowing costs, and enhances our leverage position."
The facility has a bullet principal repayment structure, with the principal amount repaid at maturity. TECOM listed on the Dubai Financial Market a year ago after raising $463 million in an IPO.
Abu Dhabi Commercial Bank PJSC, Emirates NBD Capital Limited, and Dubai Islamic Bank PJSC are the joint lead arrangers for the new facility.
(Writing by Brinda Darasha; editing by Daniel Luiz)
