Aldar repays $1.25bn bond
Company has refinanced or agreed new terms on all financing facilities
Abu Dhabi’s Aldar Properties has announced that it has repaid a $1.25bn bond, marking a financial milestone for the company as it has now successfully refinanced or agreed new terms on all its financing facilities since the merger.
The bond that matured in May 2014 carried an annual interest cost of 10.75% and was repaid using cash and by drawing down on committed liquidity facilities that carry an annual interest cost of 1.7%.
Aldar 's weighted average cost of debt has reduced from 5.8% to 2.8%.
Since completing the merger last year, Aldar Properties has reduced its gross debt from AED14.2bn to AED10.1bn and following the repayment of the bond continues to maintain a strong cash position of AED3.8bn of cash as of 31 May 2014.
Aldar’s refinancing initiatives have reduced the overall cost of borrowing from AED1bn to AED300mn – representing a reduction of 70%.
"The bond repayment marks an important milestone in our strategy to deleverage and reduce borrowing costs, and we are entering the next phase of Aldar 's growth from a position of financial strength.”
“We have seen very strong demand for the three new developments that we recently launched, with a combined gross development value of approximately AED5bn. Meanwhile, we are assessing 20 other development projects as we look to monetise Aldar 's extensive land bank and continue to create significant value for our shareholders," said H.E. Abubaker Seddiq Al Khoori, chairman of Aldar Properties.
Aldar is now forging ahead with new developments, with nearly AED40.7bn in assets, including 77m2 of land for development.