By Staff writer
Major shareholder offers debt facility to help Arabtec deliver projects during 'challenging conditions'
Dubai-based construction giant Arabtec Holding on Thursday announced that it has agreed a AED400 million ($108.9 million) debt facility to be provided by Aabar, one of its major shareholders.
The funding will help the company deliver its ongoing projects during "challenging conditions", according to a statement filed to the Dubai Financial Market.
Saeed Mohamed Al Mehairbi, Acting CEO of Arabtec Holding said: "With the challenging conditions continuing in the regional construction market, this facility will provide Arabtec with additional funding to be directly deployed towards delivering our ongoing and newly awarded projects in a timely manner."
Last month, a meeting of Arabtec shareholders approved a plan to use AED1 billion ($272 million) of the company's statutory reserves to wipe out some of its accumulated losses.
The company has been struggling with a difficult industry environment as Gulf economies slow and governments restrain spending because of low oil prices. T
The AED1 billion will cover 44 percent of the company's accumulated losses, leaving a reserves balance of 148 million dirhams, officials said.
Arabtec has hired restructuring advisory firm AlixPartners to help it strengthen its capital structure and reform its business.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.