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.
Follow Emirates 24|7 on Google News.