Kuwaiti logistics firm plans to boost bank credit lines to $1.4bln

It has so far increased credit facility with some banks from $725mln to $800mln

  
A Kuwaiti trader is seen at the Kuwait Boursa stock market trading hall in Kuwait city, Kuwait September 16, 2019.

A Kuwaiti trader is seen at the Kuwait Boursa stock market trading hall in Kuwait city, Kuwait September 16, 2019.

REUTERS/Stephanie McGehee

Kuwait’s major logistics company is looking to bolster credit lines with banks to ensure there is sufficient capital to fund company’s growth plans. 

Agility Public Warehousing Company confirmed on Thursday that it has so far refinanced and increased its credit facility line from $725 million to $800 million with existing and new local, regional and international banks. 

The credit lines have terms ranging from three to five years. 

The company is also working to refinance its other existing bilateral facilities and increase its available credit lines to around $1.2 billion to $1.4 billion. 

“The purpose of these facilities is to finance the company’s growth plans,” the company said in a bourse filing to the Dubai Financial Market (DFM). 

The company’s net profit for the first half of 2020 fell by 61.3 percent to $53 million. 

Tarek Sultan, Agility vice chairman and CEO said last year that the logistics firm was able to perform “reasonably well” despite the challenges posed by the coronavirus pandemic. 

“Our contract logistics business and logistics parks have weathered this reasonably well because demand for storage space has been steady or increased, especially as customers have looked to add to safety stock or support pandemic-driven increases in e-commerce sales,” he said. 

(Writing by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@refinitiv.com 

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021

More From Equities