Abu Dhabi-based developer says it has agreed with banks to refinance loans with longer maturities
Aldar Properties, the largest real estate firm in Abu Dhabi, has agreed with banks to refinance loans worth 1.8 billion dirhams ($490.4 million dirhams) with longer maturities, its chief financial officer told Reuters on Tuesday.
In February, Aldar said it planned to extend the lifespan of its 6 billion dirhams of total debt, which includes a $750 million sukuk issue.
Out of the 6 billion dirhams, bank loans constitute 3.2 billion dirhams, of which 1.8 billion dirhams is now being refinanced, Greg Fewer told Reuters.
"This achieves a major objective for us this year to extend the duration of our loans and at attractive terms for five, seven and ten years on a bullet basis," he said. Under a bullet loan, the amount borrowed is repaid at the end of the term.
The 1.8 billion dirhams of loans being refinanced were to mature at different points between December 2016 and 2018.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.