Stock - Fertiglobe
The new capital structure bolsters Fertiglobe’s flexibility to pursue growth opportunities, while maintaining an attractive dividend profile and investment grade credit ratings. Image Credit: Supplied

Dubai: The ADNOC joint venture Fertiglobe is refinancing its outstanding $900 million bridge facility, originally due 2024, with new 3-year ($300 million) and 5 year ($600 million) term facilities, it said on Friday.

Fertiglobe also increased the capacity of its currently undrawn Revolving Credit Facility (RCF) from $300 million to $600 million and extended the facility’s maturity from 2026 to 2027, it said in a regulatory filing on ADX.

The term facilities carry margins of 150bps and 175bps respectively. The margin on the RCF has been reduced to 140bps compared to the previous facility margin of 175bps. “Both transactions were heavily over-subscribed, demonstrating the strong support of Fertiglobe’s expanded bank group,” it said. The refinancing agreement extends Fertiglobe’s weighted average debt maturity from 1.3 years to 4.3 years and provides ample liquidity.

Nine-month performance

An 87 per cent revenue growth propelled the ADNOC joint venture Fertiglobe to a net profit of $1.1 billion, which meant a 203 per cent increase for the nine-month period. The ADX-listed company is the largest producer of nitrogen fertilizers in the Middle East and Africa.

As H2-2022 dividend, Fertiglobe expects to pay a ‘minimum of $700 million’ (Dh0.31 a share) to shareholders in April 2023 after paying $750 million in October as interim dividend for this year.