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Mon 8 Jan 2018 01:34 PM

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Dubai's Drake says UAE bank debt restructuring completed

Contracting giant also looking to refinance debt on projects in Saudi Arabia

Dubai's Drake says UAE bank debt restructuring completed

Dubai-based contracting giant Drake & Scull International (DSI) has announced that it has successfully completed the restructuring of its corporate general bank debt in the UAE.

The company said in a statement that it has also secured new credit lines and working capital facilities for its ongoing and new projects portfolio.

DSI said it has obtained the support from all its creditors for the restructuring of its corporate general debt in the UAE after reaching an agreement with nine banks to refinance AED566 million.

The remaining tranche of the company’s corporate general debt comprising the AED440 million sukuk will mature in November 2019. The company will initiate talks with its sukuk holders to refinance this tranche in the second half of the fiscal year 2018.

As of September 30 2017, the total bank debt of the Group stands at AED2.92 billion.

DSI said that another upcoming strategic priority includes the restructuring and refinancing of its projects debt with the initial focus on approximately AED1 billion of funded projects debt in Saudi Arabia.

Rabih Abou Diwan, investor relations director, Drake & Scull International, said: “The latest deal with the banks reflects the confidence in the DSI turnaround plan, the resilience of the group’s business model and the positive outlook of the company in the MEP sector, despite the cyclical challenges that impacted the regional construction industry.

“Our main objective is to drive a consensual restructuring plan with all our creditors across the region to rebalance our capital structure to be more efficient and conducive for our business plan and future prospects.

“The completion of our debt restructuring in the UAE will enable us to accelerate projects performance and delivery in Dubai and Abu Dhabi. This represents a key priority for the Group as we continue to streamline the business and unlock value across all operating segments.”

He added: “We are concurrently also assessing our funding requirements for our ongoing and future projects across all markets. We expect to reach bilateral consensus with our lenders to refinance our projects debt and upon completion we will be considering syndication across all the debt structure in the fiscal year 2018.”

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