Home UAE Dubai TECOM Group secures $2.1bn refinancing deal for existing facility The unsecured loan facility is expected to have a positive impact on the company’s cash flow profile while providing funds to execute growth strategy by Kudakwashe Muzoriwa June 15, 2023 Image credit: WAM Dubai’s TECOM Group has secured a new five-year $2.1bn (Dhs7.6bn) unsecured loan facility to refinance the existing credit facility, which is expected to provide the business-park operator with greater financial flexibility and lower its borrowing costs. The facility has been secured at more favourable terms, leading to immediate interest expense saving for five years. “The new facility will provide us with greater financial flexibility, lower our borrowing costs and enhances our leverage position,” Abdulla Belhoul, CEO of TECOM Group said, adding that the loan will enable the company to invest in the growth of its business. TECOM said the loan facility provides drawdown flexibility till maturity and also increases the duration. The unsecured loan is split into a Dhs4.4bn term loan, which is equivalent to the amount that has already been drawn down from the previous agreement and a Dhs3.2bn revolving credit facility, equivalent to the existing undrawn amount. “The facility has a bullet principal repayment structure, with the principal amount repaid at maturity,” the company said in a bourse filing. The group said the newly secured facility will have a positive impact on its cash flow profile while providing the company with the funds to execute its growth strategy. Abu Dhabi Commercial Bank, Emirates NBD Capital and Dubai Islamic Bank are the Joint mandated lead arranger on the credit facility. TECOM Group’s growth strategy Meanwhile, TECOM’s Q1 2023 net profit surged 34 per cent to Dhs255m, driven by strong revenue growth, enhanced operational efficiency and better occupancy rates. The Dubai-based business park operator said its revenues for the quarter ended March 2023 jumped by 6 per cent to around Dhs514m. Occupancy rates for commercial and industrial assets for the quarter rose 7 per cent year-on-year to 87 per cent, marking the fifth quarter of sequential growth. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter surged 14 per cent to Dhs399m, mainly driven by top-line growth and lower operational expenses. The group has several new projects in the pipeline, including AstraZeneca’s move to Dubai Science Park and the opening of THRIVE factory, the first 100 per cent plant-based meat factory in the Middle East, in Dubai Industrial City. Founded in 1999, TECOM provides office space to more than 7,500 companies and manages 10 large business complexes, including Dubai Internet City, Dubai Media City, and Dubai Knowledge Park. The business park operator raised Dhs1.7bn in an initial public offering on the Dubai Financial Market in July 2022. Read: TECOM Group’s Q1 2023 net profit rises 34% to Dhs255m Tags credit facility Dubai Tecom Group unsecured loan 0 Comments You might also like Carrefour launches 24/7 express delivery service in Dubai Parkin, AWQAF Dubai to build new parking facility in Al Sabkha District Mark Phoenix on how Sankari is redefining luxury real estate Talabat plunges over 7.5% in Dubai trading debut after $2bn IPO