Abyaar, Global agree to reschedule $153m loans

Real estate firm inks MoU with Kuwait's biggest investment bank to rejig short-term debt.
Abyaar, Global agree to reschedule $153m loans
By Eman Goma
Mon 23 Feb 2009 03:09 PM

Kuwait's Abyaar Real Estate Development Co said on Monday it signed an initial deal for loans worth 45m dinars ($153m) from Global Investment House in a debt rescheduling plan.

Abyaar's Vice-President Marzouk Al Rashdan said the firm signed a memorandum of understanding with Global, Kuwait's biggest investment bank, to reschedule short-term debt worth 45 million dinars in return for mortgaging some real estate projects.

"If we reach a final agreement on this loan we would approximately have rescheduled 90 percent of (Abyaar's) short-term finance," Rashdan told Reuters.

The deal will extend short-term debt for a maximum of two years, he said, adding it would be finalised within a 30-days deadline.

Last week Abyaar said it was in talks with local banks to reschedule debt and receive new loans worth 40 million dinars.

In January, Abyaar secured a 14 million dinars loan from Bank of Kuwait and Middle East to pay off financial obligations and finance projects.

Rashdan said in the future the firm plans to reschedule its loans via long-term refinancing, through banks rather than investment firms.

"Our aim within the next six months is for Abyaar to start its finance with banks to refinance and develop projects," he said.

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