Oct. 10 (Bloomberg) -- Aldar Properties PJSC, Abu Dhabi’s biggest developer, is in talks with banks to borrow as much as $1.5 billion in a 364-day loan to repay a bond due in May, according to two people familiar with the plan.
Banks have been asked to submit pricing for the facility, which will be used to repay the $1.25 billion bond, said the people, who asked not to be identified because the information is private. Aldar may sell a new bond before May to repay the facility if market conditions permit, or extend the loan into a longer-term facility, according to the people.
A spokesman for Aldar, who asked not to be identified citing company policy, declined to comment when contacted by Bloomberg today. Reuters reported the story yesterday.
Aldar, which sold assets including a Ferrari theme park to the government as part of a 2011 bailout, is set to receive cash payments totaling 9.1 billion dirhams ($2.48 billion) from the second-half of this year to the end of 2017, the company said. The developer will receive 1.48 billion dirhams this year and another 5.25 billion dirhams in 2014 as it gradually reduces its 9.6 billion dirhams of net debt, according to a presentation to investors in August.
The developer said second-quarter profit tripled to 1.25 billion dirhams as falling costs and a gain from its June takeover of Sorouh Real Estate Co. made up for plummeting revenue. The acquisition created a developer with $13 billion in assets.
Total borrowing including undrawn credit facilities is about 14.2 billion dirhams, of which about 12 billion comes due by the end of next year, Chief Financial Officer Greg Fewer said in August.
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