Abu Dhabi: Arabtec Holding, the Dubai-listed contractor, said on Wednesday that the proceeds of a Dh400-million-facility provided by Aabar will be applied towards ensuring the timely delivery of ongoing projects.
The facility, which matures on June 30, 2018, will also go to general corporate purposes, Arabtec said in a statement to the Dubai Financial Market (DFM) where it is listed.
The company did not disclose the interest rate on the Dh400-million facility but said that the rate is “attractive to the company relative to the current construction financing market conditions”.
“Whilst the group will incur some additional interest costs as a result of its utilisation, the facility will provide the company with the flexibility to deploy funds across its ongoing projects where required, assisting the generation of revenue through timely project delivery and limiting potential delays,” Arabtec said.
It also pointed that it has recently won contract awards worth more than Dh9 billion. Arabtec said it is focused on delivering its existing projects, and executing its strategy that was outline to shareholders in April.
On July 14, Arabtec announced it has agreed to the debt facility from Aabar, one of the contractor’s major shareholders.
Arabtec’s share prices ended 1.3 per cent higher on Wednesday to reach Dh1.56.
