Tecom Group enters into AED 7.6bn loan deal to secure refinancing

Tecom Group enters into AED 7.6bn loan deal to secure refinancing

Dubai – Mubasher: Tecom Group has entered into a new five-year AED 7.60 billion unsecured loan facility that replaces the existing partially utilised term loan of AED 7.60 billion.

The new loan agreement will have a positive impact on Tecom Group’s cash flow profile in addition to offering the funds needed to execute its growth strategy, according to a press release.

What makes the new loan deal different from the replaced one is being secured at more favourable terms which will result in immediate interest expense saving over the five-year period.

The new facility consists of AED 4.40 billion term-loan equivalent to the amount that has already been drawn down from the previous agreement, besides an AED 3.20 billion revolving credit facility that is equivalent to the existing undrawn amount.

CEO of Tecom Group, Abdulla Belhoul, said: “The new facility will provide us with greater financial flexibility, lower our borrowing costs, and enhances our leverage position. Importantly it enables us to invest in the growth of our business to unlock greater value for our shareholders.”

Belhoul elaborated: “The new facility demonstrates our ability to leverage our strong financial standing and performance, market reputation and leadership position within the commercial real estate segment to take advantage