Abu Dhabi developer Aldar Properties has refinanced AED1.8bn ($490m) of bank loans which were due to mature in 2018.

Three local and international banks agreed interest-only loans with five, seven and ten-year tenors.

Aldar’s debt maturity profile now averages four years.

“Aldar’s ability to secure interest only bank loans with maturities of up to 10 years at highly competitive commercial terms underlines Aldar’s robust performance, clear strategy and future prospects,” the company said in a statement.

US-based Standard & Poor’s upgraded Aldar’s long and short term issuer rating from BBB-/A-3 to BBB/A-2. It cited the property developer’s improving operating performance. Recurring income from Aldar’s rental portfolio has strengthened its financial and risk profile.

The developer awarded AED440m of contracts on its Nareel Island and Al-Merief developments in July.

Its first half net profit increased 9 per cent year on year to AED654m, on AED1.7bn of revenues.