UAE's Al Jaber to raise $1.6bn from asset sale
Al Jaber will now need to get an additional $1.06bn (AED3.9bn) after already raising $353m (AED1.3bn) from previous sales
UAE-based family owned business conglomerate, Al Jaber Group has almost doubled the amount of cash it intends to raise from asset sales including real estate and shares under a new debt repayment plan it offered to creditors, sources said.
The group, with interests spanning construction, engineering and shipping, plans to raise $1.4bn (AED5.2bn) by selling assets including real estate and shares by March 2018, compared with $748m (AED2.7bn) proposed earlier, the sources told Bloomberg.
Al Jaber will now need to get an additional $1.06bn (AED3.9bn) after already raising $353m (AED1.3bn) from previous sales, it said in its presentation to creditors.
The company signed a debt-restructuring agreement with banks in June 2014 after being in negotiations for about four years, people familiar with the matter said at the time.
The new plan includes raising $408m (AED1.5bn) by the end of the year, $163m (AED600m) of which will be used to repay debt and for working capital, the sources said.
The company will use an additional $177m (AED650m) to repay creditors who want to exit at about 50 cents to dollar, and the maturity of the remaining debt would be extended to 2024, they said.
National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, First Gulf Bank and Union National Bank, which hold about 50% of Al Jaber’s $1.6bn debt, agreed to the debt plan.