By Staff writer
Construction giant says it will repay the remaining $272m before the end of this month as it cuts debt
Abu Dhabi's largest property developer will reportedly repay the remaining AED1 billion ($272 million) of a AED4 billion loan before the end of this month.
Aldar Properties, which built Abu Dhabi's Formula One race circuit, will use scheduled cash payments from the government after selling assets to settle the loan, Aldar told Bloomberg on Monday.
The company repaid AED3 billion last year, prompting rating agencies Standard & Poor's and Moody's to restore its investment-grade rating.
In November Aldar Properties reported a 41 percent rise in third-quarter net profit, beating analyst forecasts.
The builder made a profit of AED584 million in the three months ending September 30, compared with AED413 million in the corresponding period in 2013.
Over the past 12 months, the company has significantly deleveraged the business, reduced its cost of borrowing and extended its maturity profile.
As at Q3, recurring income had reached an annualised figure of approximately AED1 billion and is on track to reach AED1.6 billion, S&P said.
As at September 30, Aldar's total assets were AED38.21 billion.
Mohammed Khalifa Al Mubarak, CEO of Aldar Properties, said in November: “Our recurring revenue assets continue to grow, especially with Yas Mall coming on stream and we are well on our way to achieving our recurring income target. This will help smooth out bottom line earnings and underpin our business as we commence a new wave of development projects.”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.