Dubai, UAE — TECOM Group, a creator of specialized business districts, has secured a new AED 7.6 billion ($2.06 billion) unsecured loan facility for a duration of five years.
This facility replaces an existing partially utilized term loan of the same amount. Tecom said the new facility is expected to have a positive impact on the company’s cash flow profile while providing the necessary funds to support its growth strategy.
Split into a term loan of AED 4.4 billion, equivalent to the drawn-down amount from the previous agreement, and a revolving credit facility of AED 3.2 billion, equivalent to the undrawn amount, the facility allows drawdown flexibility until maturity.
The new loan facility offers greater financial flexibility and more favorable terms, resulting in immediate interest expense savings over the five-year period.
Abu Dhabi Commercial Bank, Emirates NBD Capital Limited, and Dubai Islamic Bank PJSC have been appointed as the Joint Mandated Lead Arrangers for the new facility.
Abdulla Belhoul, CEO of TECOM Group, said the new facility would lower borrowing costs, enhance the company’s leverage position, and enable investments in business growth to create greater value for shareholders.
Michael Wunderbaldinger, CFO of TECOM Group, highlighted the accretive impact of the loan agreement on the company’s bottom line, as it optimizes the cost of capital.
“The new facility will lower financial costs, improve cash flow, and align more closely with the company’s funding needs in the foreseeable future,” he said.