Aldar renegotiates terms of Sorouh loan facility

30 June 2013

Aldar-Sorouh merger becomes effective 30 June

Aldar Properties has renegotiated the terms of a Sorouh Real Estate loan facility signed in June 2010, the company announced on 27 June. The interest margin on the loan, which currently has an outstanding balance of AED2.1bn, has been reduced from 4.5 per cent to 2.45 per cent.

The facility was arranged and funded by Abu Dhabi Commercial Bank, First Gulf Bank, National Bank of Abu Dhabi and Noor Islamic Bank. It was used to repay a sukuk (Islamic bonds) the company had issued in 2008 and to finance the construction of Shams Gate and other developments in Abu Dhabi.

Aldar and Sorouh start trading as a merged entity on 30 June. Under the new company, which has a capital of AED7.86 ($2.14bn), the assets and liabilities of Sorouh are assumed by Aldar.

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