Aldar Properties completes AED1.8bn refinancing and receives rating upgrade from S&P
Abu Dhabi - UAE, August 18, 2016: Aldar Properties PJSC ("Aldar") has successfully refinanced AED 1.8bn of existing bank loans due to mature by 2018. Separately Aldar's long and short-term corporate credit ratings have been upgraded by S&P Global Ratings to BBB/A-2 with a stable outlook.
The conclusion of the bank loan refinancing reinforces the strength of Aldar's balance sheet with the average debt maturity now extending to four years. The interest only loans were agreed with three local and international banks over five, seven and ten year maturities. Aldar's ability to secure interest only bank loans with maturities of up to 10 years at highly competitive commercial terms underlines Aldar's robust performance, clear strategy and future prospects.
Further reflecting Aldar's continued financial strength, S&P Global Ratings upgraded its long-term and short-term corporate credit ratings by one notch from BBB-/A-3 to BBB/A-2. The ratings firm noted that Aldar's operating performance is improving, on the back of steady recurring income from its rental portfolio, which has strengthened its financial and business risk profile.
Aldar's credit rating was previously upgraded to investment grade (BBB-/A-3) by S&P in December 2014.
Commenting on the refinancing and upgrade, H.E. Mohamed Khalifa Al Mubarak, CEO of Aldar Properties, said:
"This ratings action is another acknowledgement of our financial strength and the success we have enjoyed in building a mature and sustainable business. With a strong capital structure in place we remain well positioned, with a clear strategy that is focused on creating long-term value for our shareholders."