TECOM Group announce AED 7.6 Billion unsecured loan facility to drive growth strategy

TECOM Group announce AED 7.6 Billion unsecured loan facility to drive growth strategy

TECOM Group PJSC (DFM: TECOM), the company known for creating specialized business districts and vibrant communities, has announced a new unsecured loan facility worth AED 7.6 billion, replacing the existing term loan of the same amount.

The five-year facility will positively impact the company's cash flow and provide funds to support its growth strategy.

The new facility offers more favorable terms, resulting in immediate interest expense savings over the five-year period. It provides flexibility for drawdowns until maturity and extends the duration. The facility is divided into an AED 4.4 billion term loan, equivalent to the amount previously drawn from the old agreement, and an AED 3.2 billion revolving credit facility, matching the existing undrawn amount. Repayment of the principal amount will be made in a bullet structure upon maturity.

Abdulla Belhoul, CEO of TECOM Group, stated that the new facility enhances the company's financial flexibility, lowers borrowing costs, and strengthens their leverage position. It allows them to invest in business growth and deliver greater value to shareholders. The facility demonstrates their ability to leverage their financial standing, market reputation, and leadership in the commercial real estate segment while taking advantage of the liquidity in the UAE banking sector. The favorable terms of the loan reflect the confidence the financial community has in the company's business and growth plans.

Michael Wunderbaldinger, CFO of TECOM Group, highlighted the proactive efforts and prudent approach in optimizing their cost of capital. The new facility is expected to have a positive impact on the company's bottom line, reducing financial costs, improving their cash profile, and aligning with their funding needs in the foreseeable future.

News Source: Dubai Media Office

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