Credit Facility Increased from $1 billion to $2.125 billion
AD Ports Group announced today that it has successfully refinanced and increased its current revolving credit facility from $1 billion to $2.125 billion.
This move aims to improve AD Ports financing costs through better interest margins.
It also aims to extend the maturity of the revolving credit facility from 2026 to 2028, with an option to extend it until 2030.
AD Ports Group Expands its Banking Relationships
The new credit facilities have attracted significant interest from local, regional, European, Asian, and international banks.
This resulted in an oversubscription of more than 2.5 times the facility value.
With the implementation of the renewed credit facilities, AD Ports Group will expand its banking relationships from nine banks to 18.
As a result, it will enhance its financial flexibility and access to larger funding pools.
Confidence in Abu Dhabi Ports Group
Martin Arbow, Group Chief Financial Officer of AD Ports Group, said:
“The strong interest in this renewed credit facility and the resulted oversubscription are a testament to the banking community’s confidence in Abu Dhabi Ports Group’s strong financial position and prudent strategic direction.”
He added that the refinancing will enable the group to improve financing costs.
The group will also enhance its liquidity as it pursues its short and medium-term growth aspirations.
While extending the maturity of the revolving credit facility to 2028, with the possibility of extending it until 2030, will provide greater financial flexibility and better planning options.
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Moody’s Rating
Recently, AD Ports Group has received a preliminary credit rating of “A1*” with a stable outlook from Moody’s Investors Service.
Mentioning that this is the first time that Abu Dhabi Ports Group has received a credit rating from Moody’s.
Even the Group has previously obtained investment-grade ratings from other global rating agencies such as Standard & Poor’s and Fitch.
*FYI: “A1” is the fifth highest rating on Moody’s 21-notch global rating scale, ranging from “Aaa” to “C”.
An “A1” rating indicates an upper-medium-grade investment with low credit risk.
