property

Drake & Scull completes corporate debt restructure

Construction giant says it has also secured new credit lines for its projects

Staff Report
17:50 January 8, 2018

Abu Dhabi: Dubai-listed Drake & Scull International (DSI) on Monday said it has completed the restructuring of its corporate general bank debt in the UAE and also secured new credit lines and working capital for its projects.

DSI also reached agreements with nine regional and local banks to refinance Dh566 million, comprising 56 per cent of its total corporate general debt, which stood at Dh1.07 billion as of September 30, 2017, according to a statement by the firm.

The tenure and the maturity of the Dh566 million corporate general debt have been extended and re-termed on average for three years.

The remaining tranche of the company’s corporate general debt, comprising Dh440 million sukuk, will mature in November 2019.

The company will initiate talks with its sukuk holders to refinance this tranche in the second half of the fiscal year 2018, the statement said.

As of September 30, 2017, the total bank debt of the group stood at Dh2.92 billion. Corporate general debt and projects debt comprise 34 per cent and 66 per cent of total bank debt respectively.

“The completion of our debt restructuring in the UAE will enable us to accelerate projects performance and delivery in Dubai and Abu Dhabi. This represents a key priority for the Group as we continue to streamline the business and unlock value across all operating segments,” said Rabih Abou Diwan, Investor Relations Director, Drake & Scull International.