Dubai-based contractor Drake & Scull International says it has completed the restructuring of its corporate general bank debt in the UAE and has secured new credit lines and working capital facilities for its ongoing and new projects.

DSI says it has obtained the support from all its creditors for the restructuring of its corporate general debt in the UAE.

In the fourth quarter of last year it reached an agreement with nine regional and local banks to refinance AED566m ($154m). The tenor and maturity of this debt has been extended and re-termed on average for three years.

The AED566m is 56 per cent of its total corporate general debt, which stood at AED 1.07bn as of 30 September 2017.

The remaining tranche of the Company’s corporate general debt comprising the AED 440 million sukuk will mature in November 2019. The company says it will initiate talks with its sukuk holders to refinance this tranche in the second half of the fiscal year 2018.

The total bank debt of the group was AED2.92bn as of 30 September 2017. Corporate general debt was 34 per cent of the total, and project debt was 66 per cent of the total.

Drake & Scull International has also successfully secured under the new term sheets signed on bilateral basis with all respective banks, new credit lines and working capital facilities for its ongoing and future projects portfolio in the UAE.

The company also plans to restructure and refinance its projects debt with the initial focus on approximately AED1bn of funded projects debt in Saudi Arabia.

The company is concurrently in advanced talks with its creditors in the kingdom and expects to complete the refinancing of its Saudi projects debt in during the first quarter of this year.

Drake & Scull International completed its capital restructuring programme last year.

The capital restructuring was split into two phases. The first phase was a capital reduction. The second phase involved a AED500m ($136m) capital increase.

Tabarak Investment acquired the majority shares of DSI’s former chief executive officer, Khaldoun Tabari in June 2017.