Abu Dhabi building firm Arkan secures $381 million loan for REFI

Abu Dhabi building firm Arkan secures $381 million loan for REFI

Arkan Building Material Company has secured a 1.4 billion dirham loan ($381.16 million) from mainly local banks to refinance existing debt and fund new projects, it said on Wednesday.

June 20, 2012 5:42 by Reuters

Arkan Building Material Company has secured a 1.4 billion dirham loan ($381.16 million) from mainly local banks to refinance existing debt and fund new projects, it said on Wednesday.

The new loan carries a 6-1/2 year maturity and was provided by a group of lenders including First Gulf Bank, Union National Bank and Emirates NBD, the statement said.

It did not provide any details on pricing for the loan but said it would lead to “significant savings in interest cost for Arkan over the repayment period of the loan.”

The company, which is 51-percent-owned by Abu Dhabi’s General Holding Corporation, a fully government-held entity, plans to launch three new business units in the next three years including a cement factory and lime plant, the statement said.

Arkan shares were up 1.27 percent higher at 0815 GMT but are down over 21 percent this year. The company has a market capitalisation of $376.4 million, according to Thomson Reuters data.

($1 = 3.6730 UAE dirhams)

(Reporting by Rachna Uppal; Editing by Amran Abocar)