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29 March 2024

Aabar Investments to up $800m loan to $2bn

The trade, which made Aabar the biggest shareholder in Arabtec, was done at a price of Dh5 per share, compared to the stock's closing market price of Dh4.26. (SUPPLIED)

Published
By Reuters

Abu Dhabi investment vehicle Aabar Investments may increase its recent $800 million (Dh2.9 billion) loan with local and international lenders to $2bn to refinance debt, bankers said yesterday.

Last month, Aabar, the emirate's fastest-growing investment vehicle, which has stakes in Daimler and Virgin Galactic, entered into a $800m, three-year loan deal with lenders.

"Banks are working on upsizing the recent loan to $2bn that could be used for paying maturing loans and probably investments," a banker familiar with the matter said. Another banker said the loan will be finalised "within weeks".

Both bankers asked not to be named as the deal is not yet finalised.

National Bank of Abu Dhabi was the lead arranger of the $800m loan. Aabar's board will meet on tomorrow to consider refinancing opportunities for existing debt, it said in a statement on Abu Dhabi's bourse, yesterday.

The board will also consider new investment opportunities at its meeting, it said. Aabar's borrowings, which are all-term loans, stood at Dh15bn in December 2009. In April, Aabar said it plans to issue convertible bonds worth Dh7.3bn to Ipic, which holds a 71 per cent stake in Aabar.