Arkan agrees $381m debt refinancing deal with UAE banks
UAE based building products supplier agrees 78 month loan to help fund its growth plan in the regional market
Arkan Building Materials Company, the UAE based provider of integrated building products and construction materials, announced on Wednesday that it had completed the refinancing of existing debt to enable it to fund a pipeline of new projects in the UAE.
The new 78 month loan consists of a secured $381.1m credit agreement with a club of banks in the Middle East. The majority share of the loan lenders are: First Gulf Bank, Union National Bank and Emirates NBD.
“I am extremely happy that we were able to come to an agreement with the participating banks on a more favourable refinance package. With a definitive agreement now formally signed, Arkan is poised to execute its ambitious growth plan which will reinforce our market leading position,” Suhail Mubarak Al Ameri, chairman of Arkan, said.
“With the ongoing upturn in the region’s construction sector, Arkan is superbly placed to deliver long-term value to our shareholders,” he added.
The refinancing package will generate significant savings in interest cost for Arkan over the repayment period of the loan, Al Ameri explained.
As such, the new credit facility is in line with Arkan’s ongoing expansion programme. The company plans to launch three new business units within the next three years, thereby expanding its product offering and strengthening its position in the marketplace.
In addition, the company will focus on a number of new projects, including Al Ain Cement Factory, Arkan Lime Plant and Arkan Dry Mortar.
