Aldar Properties, Abu Dhabi’s largest property developer by market capitalization, said Tuesday it had signed a Dh4 billion revolving credit facility with National Bank of Abu Dhabi (NBAD).
“The facility, which has a tenor of three years and remained undrawn at signing, will be used for general purposes in support of Aldar’s normal course of business activities and will allow the company to optimally manage its working capital and liquidity requirements over the next three years,” Aldar said.
Greg Fewer -Aldar’s chief financial officer- said “The signing of this new revolving credit facility further demonstrates Aldar’s strong financial position and our continuing smooth access to financing markets in support of our standalone business plan. Our financial profile is strong as a result of the comprehensive restructuring undertaken in 2011 and we are delighted to see this recognized by the market as we implement our financing strategy,”
Marwan Shurrab -vice president at Dubai-based GulfMena Investments- said Aldar will use the revolving credit facility to meet its short and medium-term obligations, as Gulf News stated.
“It’s a normal, operational procedure. The key aspect of the deal one would be interested in knowing is the attractiveness of the borrowing cost in comparison to the market rates,” he added.
Shurrab said Aldar currently is in a much better financial situation than in 2011 after asset purchases in Aldar towards the end of last year by the Abu Dhabi government. He also said this revolving credit facility has no relevance when it comes to Aldar’s proposed merger with Sorouh Real Estate.
“Aldar is a long-term partner of NBAD and this significant facility is a reflection of our confidence in Aldar’s business and is consistent with our own strategy to support Abu Dhabi’s growth and ongoing development efforts,” said Abdullah Bin Khalaf Al Otaiba, a general manager at NBAD.