Abyaar, Global to reschedule $153m loans

Kuwait's Abyaar Real Estate Development Co said yesterday it signed an initial deal for loans worth $153 million (Dh562m) from Global Investment House in a debt rescheduling plan.

Abyaar's Vice-President Marzouk Al Rashdan said the firm signed a memorandum of understanding with Global, Kuwait's biggest investment bank, to reschedule short-term debt worth KD45m in return for mortgaging some real estate projects.

"If we reach a final agreement on this loan we would approximately have rescheduled 90 per cent of (Abyaar's) short-term finance," Rashdan said.

The deal will extend short-term debt for a maximum of two years, he said, adding it would be finalised within a 30-days deadline.

Last week Abyaar said it was in talks with local banks to reschedule debt and receive new loans worth KD40m. In January, Abyaar secured a KD14m loan from Bank of Kuwait and Middle East to pay off financial obligations and finance projects.

Al Rashdan said the firm plans to reschedule its loans via long-term refinancing, through banks rather than investment firms.

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