AD Ports Group, the owner of industrial cities and free zones, agreed to a $2 billion funding agreement with a group of 13 domestic and foreign banks to improve its financial standing.
AD Ports stated in a statement to the Abu Dhabi Stock Exchange, where its shares are traded, on Tuesday that the firm obtained funds under a general corporate facility agreement.
The multi-currency facility consists of three tranches with a combined value of Dh2.86 billion ($778 million), €600 million ($656 million), and $620 million ($778 million). The financial requirement was exceeded by 3.7 times.
“The success in raising the … facility reflects our profitable and enduring business as well as underscoring AD Ports Group's strong financial position and the confidence that the banking sector has in our organisation’s robust long-term financial performance,” Capt Mohamed Al Shamisi, managing director and group chief executive of AD Ports Group, said.
The AD Ports Group, which was founded in 2006 and owns and manages 10 ports in the UAE, has been extending its business operations internationally.
In order to expand operations in the nation, it last month signed a 30-year concession agreement with Egypt's Red Sea Ports Authority to build and run a multi-purpose port at Safaga Port.
As part of the agreement, AD Ports will invest up to Dh734 million, with the majority of that amount to be spent in 2024 and 2025, in superstructure and equipment, buildings, and other real estate facilities and utilities' networking inside the concession area.
The company has entered into preliminary agreements with Kazakhstan's Ministry of Industry and Infrastructural Development and KazMunayGas in January to work together on the construction of a national maritime fleet and coastal infrastructure in the Caspian and Black seas.
In order to strengthen and enhance maritime connectivity throughout Africa's west coast, AD Ports also joined forces with Angolan organisations in January.
For Dh2.5 billion last year, AD Ports purchased Noatum, a Spanish integrated logistics platform.
For the most recent financial transaction, First Abu Dhabi Bank and Citibank served as the coordinators and lead bookrunners, with Mizuho Bank and Abu Dhabi Commercial Bank serving as the additional bookrunners. As designated lead arrangers, Societe Generale and Emirates NBD Capital were involved.
Following the expansion of its marine sector, AD Ports, which made its debut on the ADX last year, projected a 50% increase in its 2022 net profit to Dh1.27 billion and a revenue increase of 41% yearly to Dh5.52 billion.