Ittihad Closes $450 Million Senior Unsecured Sustainability-Linked Facility, Boosting Liquidity Sources by an Additional $345 Million

(MENAFN- Edelman) Abu Dhabi, UAE – February 10, 2025 – Ittihad today announced the successful arrangement of a $450 million senior unsecured committed revolving credit facility (RCF), further strengthening its liquidity position. The facility was arranged by Emirates NBD, Commercial Bank of Dubai, and First Abu Dhabi Bank as Mandated Lead Arrangers and Bookrunners (MLABs) and sustainability joint coordinators, with Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank, and Emirates Islamic Bank acting as joint arrangers.
Structured at the Holdco level on a pari passu basis with the outstanding Sukuk certificates while reflecting similar terms and conditions, the facility has a five-year tenure (3+1+1), three years committed with a two-time extension option each for an additional year at the banks’ discretion. It also includes an accordion feature, allowing for an increase in the facility size. The new RCF is divided into two tranches:
• Tranche A: $225 million designated for general corporate purposes, replacing the company existing standby RCF of $105 million which remained undrawn at the time of closing.
• Tranche B: $225 million to replace the company’s existing 90-day subsidiary-level working capital facilities, which were previously financed on an uncommitted basis. Of this, $145 million will be drawn to settle and replace outstanding working capital facilities, while the remaining $80 million will provide additional liquidity source on standby for working capital purposes. As a result, the transaction will be leverage neutral.
This strategic facility marks a significant milestone for Ittihad, reinforcing its capital base and supporting future growth through an optimized capital structure. It enhances liquidity, lowers finance costs, and aligns with the company’s commitment to sustainability by integrating environmental and social performance goals into its financing strategy.
Zahi Abu Hamze, Chief Financial Officer of Ittihad, commented: “We are pleased with the flexibility this transaction provides to support our future financial needs while contributing to our efforts toward an improved credit rating—all at an efficient cost. This is yet another testament to Ittihad’s strong financial outlook. We appreciate the confidence shown by all participating banks in this transaction.”

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