The Private Department of Sheikh Mohamed Bin Khalid Al Nahyan (PD) has made a significant stride in the real estate sector by securing AED3 billion ($816 million) in syndicated financing. This major deal underscores the group’s robust financial strategy and enhances its standing in the capital markets. The financing will play a crucial role in refining existing debts, settling sukuk obligations, and bolstering the department’s overall financial structure.
The 10-year financing facility is intended to refinance current bank debts under improved terms, address sukuk responsibilities, and support various corporate initiatives, thereby fortifying PD’s long-term balance sheet.
Backed by a high-quality assortment of real estate holdings in Abu Dhabi and Dubai, this funding arrangement grants PD enhanced financial flexibility. The strategic move showcases PD’s commitment to maintaining a solid financial foundation and paves the way for future investments.
A Significant Milestone in Real Estate Financing
This landmark financing transaction highlights the unwavering institutional confidence in the Private Department’s financial resilience and strategic foresight. With this successful closing, PD positions itself as a prominent player in the UAE’s evolving real estate market, marking one of the largest syndicated loans in the sector.
A consortium of top local banks orchestrated this syndicate loan, including:
- Abu Dhabi Commercial Bank PJSC (ADCB) and Mashreqbank PSC (Mashreq) served as Joint Coordinators and Account Banks.
- ADCB, Commercial Bank of Dubai PSC (CBD), and Mashreq acted as Joint Mandated Lead Arrangers and Bookrunners, as well as Hedging Banks.
- ADCB was also designated as Facility Agent and Security Agent, while CBD took on the role of Market Hedge Coordinator.
Dr. Ahmed Mansour, CEO of PD, remarked: “This is a milestone achievement. The Private Department has successfully delivered one of its biggest goals in its financing strategy by closing this syndicate and updating its Debt Capital Market Programme.”
Dr. Mansour further stated, “This marks one of the largest syndicated loans in the UAE real estate market, highlighting a vital step that supports the Private Department’s funding strategy and shapes its new capital structure for the future.”
Implications for Future Investments
With this financing secured, the Private Department anticipates a boost in trust from local banking institutions, which will underpin its revised Debt Capital Market Programme. This program is set to facilitate future issuances, ensuring a diversified funding spectrum.
Dr. Mansour emphasized the significance of this capital infusion, explaining, “This loan syndicate, along with the updated Capital Market Programme, will significantly enhance the liquidity position that will support future investments.”
He also noted, “This is expected to positively impact the Private Department’s future credit rating and capital market issuances.”
Founded in 1964, PD is wholly owned by the Abu Dhabi ruling family and possesses one of the most extensive and diversified income-generating real estate portfolios in the UAE. This portfolio encompasses:
- More than 2,500 income-generating residential units
- 60,009 square meters of commercial space
- Two five-star hotels operating in Abu Dhabi and Dubai
The recent acquisition of AED3 billion ($816 million) in financing cements PD’s position as a major player within the UAE’s private real estate landscape, setting the stage for continued growth and strategic investments in the sector.