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Arabtec secures $109m loan from shareholder Aabar

Arabtec secures $109m loan from shareholder Aabar

The loan comes after the firm posted a $12.63m net loss for the first three months of the year

Dubai-listed construction firm Arabtec has reached an agreement with shareholder Aabar Investments for a Dhs 400m ($108.9m) debt facility, the company said in a bourse statement.

The loan comes after the firm posted a net loss of Dhs 46.4m (($12.63m) for the first three months of the year, following losses in the preceding five quarters.

Read: Dubai’s Arabtec Q1 net loss narrows as revenues rise

Arabtec acting chief executive Saeed Mohamed Al Mehairbi said the funds would help the company tackle the “challenging conditions continuing in the regional construction market”.

“This facility will provide Arabtec with additional funding to be directly deployed towards delivering our ongoing and newly awarded projects in a timely manner,” he added.

Arabtec announced a Dhs 2.3bn ($626.1m) loss for 2015 due to the difficult environment in the regional construction market.

Read: Dubai’s Arabtec announces Dhs 2.3bn loss

It has since hired restructuring advisory firm AlixPartners to help strengthen its capital structure, according to reports in April.

Read: Dubai’s troubled Arabtec hires AlixPartners for review, says sources

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