TECOM Group secures refinancing for existing loan facility at more favourable terms

TECOM Group secures refinancing for existing loan facility at more favourable terms

The facility provides TECOM with financial flexibility with a bullet payment profile and availability to draw down until maturity.

Abdulla Belhoul: Securing the new facility reinforces TECOM’s ability to leverage its strong financial performance and market leadership position to capitalise on ample liquidity in the UAE banking sector

Dubai, UAE: TECOM Group PJSC (DFM: TECOM), (the “Company” or the “Group”), the creator of specialised business districts and vibrant communities, today announced it has entered into a new five-year AED 7.6 billion unsecured loan facility (the “Facility”) replacing the existing partially utilised term loan of AED 7.6 billion. The Facility will have a positive impact on the Company’s cash flow profile while providing it with the funds to execute its growth strategy.

The facility has been secured at more favourable terms, leading to immediate interest expense saving over the five-year period. The Facility provides drawdown flexibility till maturity and also increases the duration. It is split into an AED 4.4 billion term loan, which is equivalent to the amount that has already been drawn down from the previous agreement, and an AED 3.2 billion revolving credit facility, equivalent to the existing undrawn amount. The Facility has a bullet principal repayment structure, with the principal