AD Ports secures $2b corporate facility with syndicate of 13 banks
The funding requirement demonstrates the confidence that the banking sector has in AD Ports.
The multi-currency facility, equivalent to around $2 billion, includes three tranches amounting to 600 million euro, $620 million, and Dhs2,863 million with a tenure of up to 2.5 years.
The demand for the facility was overwhelming, with commitments of $7.4 billion in total from the participating banks.
The funding requirement was therefore 3.7x oversubscribed, demonstrating the confidence that the banking sector has in AD Ports Group’s financial health and prospects.
In addition to strong demand for this new syndicate facility, AD Ports Group managed to improve pricing compared with the $1 billion RCF that the Group had secured in 2021.
AD Ports Group is A+ credit rated by both Fitch and S&P Global, which reaffirmed their ratings post-listing and most recent announcements of acquisitions.
Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said, “The success in raising the $2 billion facility reflects our profitable and enduring business as well as underscoring AD Ports Group’s strong financial position and the confidence that the banking sector has in our organisation’s robust long-term financial performance. This recent announcement also goes further to reinforce our ambitious strategic development plans and the UAE’s wise leadership’s vision for economic diversification.”
First Abu Dhabi Bank and Citibank were the coordinators and book runners, while Mizuho Bank and Abu Dhabi Commercial Bank were the additional book runners. Societe Generale and Emirates NBD Capital Limited acted as Mandated Lead Arrangers.
Standard Chartered Bank, HSBC Bank Middle East, BNP Paribas, Crédit Agricole Corporate and Investment Bank, and Bank of China were Lead Arrangers while Sumitomo Mitsui Banking Corporation and Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch acted as Arrangers. The Facility Agent for the agreement is Abu Dhabi Commercial Bank.
Meanwhile AD Ports Group released earlier its 2022 Integrated Annual Report with the Abu Dhabi Securities Exchange (ADX), following a successful year that included a listing on the ADX which was heavily oversubscribed.
AD Ports Group continued to expand its global presence and service offerings, as well as launching new trade routes to improve global trade connectivity.
The Group reported strong operational and financial performance, with a revenue growth of 41 per cent year-on-year, reaching Dhs5.5 billion.
Additionally, as part of its ambitious growth strategy, the Group completed seven MandA transactions in 2022 with a total value of Dhs5.9 billion.
The vertically integrated business model of AD Ports Group, which includes Economic Cities and Free Zones, Ports, Maritime, Logistics, and Digital Clusters, has enabled the Group to contribute significantly to the non-oil GDP of the UAE and Abu Dhabi. According to Oxford Economics, the Group contributed 13 per cent of the UAE’s non-oil GDP and 24 per cent of Abu Dhabi’s non-oil GDP in 2022, and has created over 373,000 jobs in the UAE.
Falah Al Ahbabi, the Chairman of AD Ports Group, commented, “The AD Ports Group has firmly established itself as a leading international trade facilitator and a fully integrated provider of global trade logistics and transport solutions, due to its exceptional year of strategic, geographical, and financial expansion.”
Al Ahbabi added, “Moving forward, the Group is in an exceptionally strong position and well-prepared to expand its business globally, with plans to achieve substantial growth across all its divisions.”
“As part of the UAE’s visionary leaders’ socio-economic objectives, the Group is committed to maximising its contributions to national economic development, job creation, and its standing on the international stage, while also creating value for its shareholders.”
Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said, “The year 2022 marked a significant turning point for AD Ports Group as we delivered exceptional financial results and strengthened our position as a leading integrated supply chain solutions provider and gateway to Abu Dhabi and the region’s thriving economies. This outstanding performance during a time of unprecedented global uncertainty is a testament to the UAE’s wise and visionary leadership.”
Al Shamisi added, “Moving forward into 2023, we plan to leverage the momentum of our accomplishments in 2022 to deliver continued value to our shareholders. Our strategic focus will be on expanding our global reach and enhancing our operations in vital shipping, logistics, and ports sectors.”
