Barwa Real Estate repays $700m loan

21 December 2009

Qatar property firm claims slowdown does not affect financial obligations

According to Qatar’s Barwa Real Estate, it has repaid a $700m loan issued in 2007 and says the slowdown in the real estate market has not affected the company’s ability to repay its debts and complete real estate projects.

The loan was arranged in December 2007 by France’s BNP Paribas, the UK’s Standard Chartered, the US’ JP Morgan, and Bahrain’s Gulf International Bank. The deal had a tenor of one year, with an option to extend it for an additional year.

“Barwa continues to honour its financial obligations either on time or ahead of schedule,” says Ghanim bin Saad al-Saad, chairman of the property firm.

The loan was priced at 90 basis points above the London interbank offered rate (Libor).

Barwa is 45 per cent owned by Qatari Diar, the real estate arm of sovereign wealth fund the Qatar Investment Authority (QIA). It is developing several large schemes in Qatar, including the Barwa Financial District, Barwa Commercial Avenue and the Barwa City residential project.

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