Aldar Properties seek bridge loan to pay off maturing debt
Aldar Properties of Abu Dhabi had talked to several financial institutions about the use of a bridge loan worth USD1.5 billion with an option for its conversion later to a bond. This matter became common knowledge for baking and industry sources.
The proposed financing would come before the maturity of a USD1.25 billion bond due on May 2014. Once approved, Aldar would be using funds through the bridge loan in order to pay for the maturing bond. This was confirmed by sources that declined to be named as the matter still was to be made public.
This would be one of the first financial transactions done by Aldar since it was merged with Sorouh Real Estate with the assistance of the Abu Dhabi government last June. The resultig merger created the second largest listed property company in the United Arab Emirates and became one of the largest property companies in all of the Middle East with a standing portfolio of USD13 billion.
An Aldar spokesman, where 30.5% is owned by Mubadala, the Abu Dhabi sovereign fund, declined to provide a comment on the transaction.
During the Abu Dhabi property market crash, Aldar was bailed out with government funds about USD10 billion paid through installments at specific periods. For the funding, the company had to give up assets such as the Abu Dhabi Formula One track, a Ferrari themed amusement park as well as some residential developments.