DUBAI: ADES International Holding PLC, a leading oil & gas drilling and production services provider in the Middle East and North Africa (MENA), has secured a SAR 300 million Long Term Loan Facility from National Commercial Bank (NCB), a leading Saudi-based financial institution.
The Facility has been secured against ADES 13 & 14 (the Company’s recently built onshore rigs for Saudi Arabia) and will be used to optimise ADES’s cost of funding and provide access to liquidity in accordance with the Group’s business strategy.
The Facility terms:
- 7-year tenor with a 12-month grace period
- Fixed interest rate of 2.25% plus variable rate of 6 months SAIBOR to be paid semi-annually
- Repayment of the principal amount will be calculated using the straight-line amortisation method, with a fixed repayment rate of 7.69%, payable semi-annually after the grace period
Commenting on the Facility agreement, Dr. Mohamed Farouk, Chief Executive Officer of ADES International Holding, said: “We are pleased to see ADES’ banking relationships and access expanded with the NCB agreement, one of the leading Saudi-based banks. It is testimony to the continued confidence placed in ADES by major regional and international banks in the Middle East. The relatively low interest rate facility will enhance our financing options and helps reduce the cost of funding for our business activities and the execution of our growth strategy going forward.”