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Thu 1 Jul 2010 08:15 AM

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Sorouh signs AED2.35bn credit facility

Abu Dhabi developer says facility secured using land bank on Al Reem Island.

Sorouh signs AED2.35bn credit facility

Abu Dhabi-based developer Sorouh Real Estate on Thursday announced that it has signed a AED2.35bn four-year facility.

The facility, a combination of term loan and revolving credit with both conventional and Islamic tranches, was secured using part of the company's land bank, including Shams Gate, part of Shams Abu Dhabi on Al Reem Island.

The facility will be used for general corporate purposes, including the early redemption of the remaining outstanding balance of the asset backed Sukuk, a security that was issued in 2008, the company said in a statement.

he facility was arranged and funded by Abu Dhabi Commercial Bank, First Gulf Bank, National Bank of Abu Dhabi and Noor Islamic Bank, it said.

The remaining balance amounts to approximately AED400m, resulting in incremental funds available to Sorouh of almost AED2bn.

These funds, the company said, will be used to finance the construction of Shams Gate and other developments in Abu Dhabi.

Richard Amos, chief financial officer, Sorouh, said: “This facility strengthens our liquidity, extends the Company’s debt maturity profile, and maintains our gearing at a comfortable level. The additional funds will be used to advance our major developments in Abu Dhabi. We are pleased to have such a strong group of local banks participating in this facility.”

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