AD Ports Group refinances, upsizes revolving credit facility to $2.125bn

AD Ports Group has completed the refinancing and upsizing of its existing revolving credit facility (RCF), increasing the facility amount from $1bn to $2.125bn, equivalent in both dirham and US dollar tranches.

The move aims to optimise the company’s financing costs, enhance interest margins, and extend the maturity of the facility from 2026 to 2028, with an option for a further extension until 2030.

The new RCF has attracted significant interest from a diverse range of banks, including local, regional, European, Asian, and international institutions, resulting in an oversubscription of more than 2.5 times the original facility amount.

As a result of this increased demand, AD Ports Group has expanded its banking pool from nine to 18 financial institutions, significantly bolstering its financial flexibility and access to a broader funding base.

AD Ports Group enables financial flexibility with RCF

Martin Aarup, group CFO of AD Ports Group, highlighted the significance of the deal, stating: “The overwhelming interest in our new RCF and the resulting oversubscription underscore the confidence that the banking community has in AD Ports Group’s robust financial health and strategic direction. This refinancing allows us to optimise our financing costs and strengthens our liquidity position to support our short and medium-term growth objectives.”

He added, “Additionally, the extension of the RCF’s maturity to 2028, with the potential to extend until 2030, provides us with greater financial flexibility and thus better planning options.”

AD Ports Group, a leading integrated ports and logistics operator in the UAE, is rated “AA-” with a stable outlook by Fitch Ratings and “A1” with a stable outlook by Moody’s. These ratings reflect the group’s strong financial position and creditworthiness.

The successful refinancing and expansion of the RCF mark a key milestone in AD Ports Group’s efforts to enhance its liquidity and ensure continued growth, reinforcing its strategy to build a diversified and sustainable business model.