AD Ports Group refinances $2.25bn debt; cuts borrowing costs

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AD Ports Group has refinanced a $2.25bn syndicated loan, securing more favourable terms with two UAE-based banks.

The move is expected to result in savings of up to Dhs44m ($12m) in finance costs over the next 12 months.

The refinancing aligns with the group’s strategy to utilise bonds as a primary long-term funding tool while extending its debt maturity profile.

New agreements to give AD Ports greater flexibility

The group has replaced the $2.25bn loan, originally obtained in April 2023, with a Dhs9.2bn ($2.5bn) medium-term facility with a 2.5-year maturity and a shorter Dhs1bn ($273m) facility with a 1.5-year tenor.

The restructuring coincides with the US Federal Reserve’s decision to cut interest rates, marking the first rate reduction since March 2020, providing AD Ports the opportunity to lock in lower borrowing costs.

“The new refinancing agreements give us greater financial flexibility and significantly lower financing costs, positioning us to capitalise on easing interest rates when accessing the debt capital markets,” said Martin Aarup, chief financial officer at AD Ports Group.

The group, rated “A+” by S&P and “AA-” by Fitch, expects the refinancing to enhance its capital structure and support long-term growth.

In other news, AD Ports Group has entered the global top 20 ranking of port operators, securing the 19th spot in the latest survey by Drewry, a UK-based maritime research and consulting firm.

The group’s rise in the rankings underscores its rapid expansion and growing industry clout, driven by strategic acquisitions and new operating concessions.

The inclusion of AD Ports Group in the Drewry Top 20 League Table, part of the firm’s 2024-2025 annual industry report, is a significant milestone for the UAE-based operator.

Read: AD Ports Group ranks among global top 20 port operators, reveals survey