Energy City Qatar (ECQ) has made an early settlement of $185mn loan, ending the last outstanding payment ($85mn) during the first six months of 2013.
ECQ's move came despite an earlier recommendation and approval of the group of banks managing the loans to extend the settlement period by another three years. However, ECQ's management decided to pay all the outstanding loans and this came mainly as a result of the recovery and growth seen in the Qatari real estate market and subsequent improvement in sales.
ECQ was able to pay off the outstanding debt as a result of the overall increase in revenues from the expansion in land and real estate sales and enhanced activity in the sector. A growing number of developers and land owners have started work on their real estate projects at Energy City.
ECQ chief executive Hesham al-Emadi said the new management at Energy City has succeeded in restructuring its plans and priorities to be more in line with the new policies and programmes of Qatar's leadership.
Al-Emadi stressed that ECQ's early settlement of loans confirms its robust creditworthiness, in addition to increasing confidence in the company among its financers, paving the way for ECQ to comfortably go into the domestic and international financial markets when this is decided.
He also said the move is a step in the right direction as it lays the groundwork for a strong start for the company in the coming period. He said the company would benefit from the opportunities offered by the Qatari economy in various fields, especially in the real estate sector.
Al-Emadi said the dream of Energy City has begun to materialise on the ground bringing real added value to the Qatari economy by establishing a world-class sustainable city that implements the highest international environmental standards, while deploying cutting-edge technology for the first time in the region.
© Gulf Times 2013
