Jun 20 2012
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Arkan announces completion of debt refinancing
Receives AED1.4 billion loan to fund new projects in the UAE
Refinancing will results in significant savings over the repayment period of the loan
Abu Dhabi, June 20, 2012: Arkan Building Material Company , a leading provider of integrated building products and construction materials in the UAE, announced today that it has completed the refinancing of existing debt to enable it to fund a pipeline of new projects in the UAE.
The new 78-month term loan consists of a secured AED1.4 billion credit agreement with a club of banks in the Middle East. The majority share of the loan lenders includes First Gulf Bank, Union National Bank, and Emirates NBD. The refinancing package will generate significant savings in interest cost for Arkan over the repayment period of the loan.
The new credit facility is in line with Arkan 's ongoing expansion programme. The company plans to launch three new business units within the next three years, significantly further expanding its product offering and strengthening its position in the marketplace. The pipeline of new projects includes Al Ain Cement Factory, Arkan Lime Plant, and Arkan Dry Mortar.
Arkan Building Materials Co. PJSC (ADX: ARKAN ), is a public joint stock company specialising in manufacturing of building and construction products in the UAE. Established in 2005, Arkan is 51 per cent owned by General Holding Corporation, an entity wholly owned by the Government of Abu Dhabi to promote sustainable industrial activity in Abu Dhabi, with the remaining 49 per cent of shares listed on the Abu Dhabi Securities Market (ADX).
Arkan 's vision is to build a large integrated building products business that serves the local and regional construction industries. Arkan 's portfolio companies include Emirates Cement Factory, one of the UAE's leading cement manufacturers, and Emirates Blocks Factories, producer of high quality concrete blocks with locations in Al Mafraq and Al Ain, and ANABEEB , a leading manufacturer of plastic pipes (GRP & PVC) and bags. The company is currently constructing Al Ain Cement Factory, which once ready will be one of the largest in the UAE with a capacity of 3.1 million tons of clinker per year and 4.5 million tons of cement. The company is also developing Arkan Dry Mortar, a high-capacity dry mortar plant located in Al Mafraq, which will produce a range of dry mix products. Additionally, Arkan actively partakes in building materials investments across the UAE, with a focus on growth opportunities in Abu Dhabi.
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