AD Ports signs funding deal worth $2bn with 13 banks

The multi-currency facility includes three tranches with a tenure of up to two-and-half years

A ship is offloaded at Khalifa Port in Abu Dhabi. AD Ports Group owns and operates 10 ports in the UAE. Photo: Abu Dhabi Ports

AD Ports Group, the operator of industrial cities and free zones, signed a funding deal worth $2 billion with a syndicate of 13 regional and international banks to strengthen its financial position.

The company secured funding through a general corporate facility agreement, AD Ports said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.

The multi-currency facility includes three tranches amounting to €600 million ($656 million), $620 million and Dh2.86 billion ($778 million) with a tenure of up to two-and-half years. The funding requirement was 3.7 times oversubscribed.

“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.

Established in 2006, the AD Ports Group, which owns and operates 10 ports in the UAE, has been expanding its operations globally.

Last month, it signed a 30-year concession agreement with Egypt's Red Sea Ports Authority to develop and operate a multi-purpose terminal at Safaga Port to boost operations in the country.

As part of the deal, AD Ports will invest up to Dh734 million in superstructure and equipment, buildings, and other real estate facilities and utilities’ networking inside the concession area, with most of that to be spent in 2024 and 2025.

In January, the company also signed a partnership with Kazakhstan's state energy company KazMunayGas and a preliminary accord with the country's Ministry of Industry and Infrastructural Development to co-operate in the development of a national marine fleet and coastal infrastructure in the Caspian and Black seas.

AD Ports also teamed up with Angolan organisations in January to develop and improve maritime connectivity along Africa’s west coast.

Last year, AD Ports acquired Spain’s integrated logistics platform Noatum for Dh2.5 billion.

First Abu Dhabi Bank and Citibank were the co-ordinators and bookrunners on the latest financial transaction, while Mizuho Bank and Abu Dhabi Commercial Bank were the additional bookrunners. Societe Generale and Emirates NBD Capital acted as mandated lead arrangers.

AD Ports, which made its debut on the ADX last year, reported a 50 per cent increase in its 2022 net profit to Dh1.27 billion as revenue grew 41 per cent annually to Dh5.52 billion on the back of expansion of its maritime business.