The National Bank of Abu Dhabi (NBAD) has signed a deal to provide a 10-year AED1.2 billion ($326.7 million) loan to Abu Dhabi National Hotels (ADNH).
NBAD’s secured facility refinanced an outstanding debt under a syndicated term loan facility that ADNH signed with four banks in January 2010, the hotel operator said in a statement.
"This is a landmark transaction given the size of debt raised in the current competitive market. ADNH was successful in negotiating to enhance the terms and tenor in the refinancing facility, which will strengthen the financial performance of our company in the near future," said Ignace Bauwens, CEO of ADNH.
Mark Yassin, co-head of wholesale banking and senior managing director of global banking, NBAD, added: "We are pleased to provide this term loan facility to ADNH in support of the company’s growth ambitions. This transaction underscores NBAD’s commitment and partnership towards the progress of the hospitality industry in Abu Dhabi and the UAE."
Abu Dhabi National Hotels is a public-traded company listed on Abu Dhabi Securities Exchange.
ADNH owns major hotels in Abu Dhabi, Al Ain and Dubai including the Ritz Carlton in Abu Dhabi, Park Hyatt in Saadiyat Island, and the Sofitel Jumeirah Beach Hotel in Dubai.
Last month, ADNH announced the appointment of former IHG and Accor senior executive Ignace Bauwens as its new CEO.
Bauwens, who has 25 years' experience in the hospitality industry, aims to increase brand and shareholders' value under his leadership, a statement said.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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