Arkan Building Material Company, a leading provider of integrated building products and construction materials in the UAE, announced today that it had 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 Dh1.4 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.
Suhail Mubarak Al Ameri, Chairman, Arkan, said: “I am extremely happy that we were able to come to an agreement with the participating banks on a more favorable refinance package. With a definitive agreement now been formally signed, Arkan is poised to execute its ambitious growth plans which will reinforce our market leading position. We would like to thank the participating banks for their overwhelming vote of confidence in the Arkan business model. With the ongoing upturn in the region’s construction sector, Arkan is superbly placed to deliver long-term value to our shareholders."