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Sun 9 Jan 2011 10:20 AM

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Drake & Scull secures $70m loan for acquisitions

Three-year loan from BNP Paribas will help finance contractor's recent buyouts in 2010

Drake & Scull secures $70m loan for acquisitions
DRAKE & SCULL: The Dubai-based contractor confirmed via a statement on the Dubai Financial Market website that the loan will have a three-year maturity

Drake & Scull International (DSI) has won a $70m loan facility from BNP Paribas to finance its recent acquisitions.

The Dubai-based contractor confirmed via a statement on the Dubai Financial Market website that the loan will have a three-year maturity.

Last year, DSI bought a 65 percent stake in Drake & Scull International Saudi, as well fully acquiring its mechanical, electrical and plumbing (MEP) divisions in Qatar and Kuwait.

It also established two further divisions based on the utilities and civil contracting sectors, DSI Infrastructure Water & Power and Drake & Scull Construction, respectively. 

In mid-December, DSI announced that it had won three new contracts in Oman and Dubai worth $27m.

Those deals brought the total of new contracts won in 2010 by DSI to $817m, up from $544m in 2009.

“At the beginning of 2010, we set out to expand our business portfolio and estimated an end-of-year backlog of over AED5bn ($1.36bn),” said CEO Khaldoun Tabari, in December. “As it stands now, the company’s backlog is a realisation of that.”

DSI also confirmed that its backlog – as of 30 September – stood at $1.5bn, a 66 percent increase over the backlog recorded at the end of last year.

That figure includes the order book of the Saudi company that DSI bought earlier this year. Projects in Saudi make up around 29 percent of the firm’s backlog.

 

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