Abu Dhabi: Aldar Properties has repaid a $1.25 billion (Dh4.59 billion) bond that matured at the end of May 2014 as the company pushes ahead with a strategy to deleverage, reduce its cost of borrowing and build a strong platform for growth.
The bond that matured in May 2014 carried an annual interest cost of 10.75 per cent and it was repaid using cash and by drawing down on committed liquidity facilities that carry an annual interest cost of 1.7 per cent. Aldar has now successfully refinanced or agreed new terms on all its financing facilities since the merger and has achieved significant interest savings. Aldar’s weighted average cost of debt has reduced from 5.8 per cent to 2.8 per cent.
Since completing the merger last year, Aldar Properties has reduced its gross debt from Dh14.2 billion to Dh10.1 billion and following the repayment of the bond continues to maintain a strong cash position of Dh3.8 billion of cash as of 31 May 2014. Aldar is now forging ahead with new developments at a time when demand is growing for high-quality real estate in Abu Dhabi. The company has nearly Dh40.7 billion in assets.
