Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, on Friday said it is refinancing its outstanding $900 million bridge facility, originally due in 2024, with new three-year ($300 million) and five-year ($600 million) term facilities.
The company, a joint venture between Adnoc and Netherlands-listed OCI, also increased the capacity of its currently undrawn revolving credit facility (RCF) from $300 million to $600 million and extended the facility’s maturity from 2026 to 2027, it said in a regulatory filing on the Abu Dhabi Securities Exchange, where its shares are traded.
Fertiglobe, the largest nitrogen fertiliser producer in the Middle East and North Africa region, said its third-quarter net profit more than doubled as it benefitted from a rise in selling prices.
Net profit attributable to shareholders for the three-month period to the end of September climbed to about $291.6 million, from $137.7 million recorded a year earlier, the company said last month.
Fertiglobe raised about $795 million from its initial public offering on the ADX last year, amid strong demand from international, regional and local investors. It announced a dividend of $700 million for the second half of 2022.
The new capital structure bolsters Fertiglobe’s flexibility to pursue growth opportunities, while maintaining an attractive dividend profile and investment grade credit ratings, the bourse filing on Friday said.
The new term facilities carry attractive margins of 150 basis points and 175bps, respectively, the company said, adding that the margin on the RCF has been reduced to 140bps compared to the previous facility margin of 175bps.
“Both transactions were heavily oversubscribed, demonstrating the strong support of Fertiglobe’s expanded bank group and the company’s current leverage and cash flow profile which position it well to maintain an attractive dividend profile and also pursue growth opportunities in the future,” Fertiglobe said.
The refinancing agreement extends the company’s weighted average debt maturity from 1.3 years to 4.3 years and provides ample liquidity, it added.
The production capacity Abu Dhabi-based Fertiglobe, which is incorporated in Abu Dhabi Global Market, comprises 6.7 million tonnes of urea and merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of nitrogen fertilisers in Mena.
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Three ways to limit your social media use
Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.
1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.
2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information.
3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.
How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
The five pillars of Islam
Read more from Aya Iskandarani
THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
