Dubai – Mubasher: Drake and Scull International (DSI) on Monday announced that it has successfully completed the restructuring of its corporate general bank debt in the UAE.

The Emirati construction and engineering services leader has secured new credit lines and capital facilities to bolster its ongoing and new projects portfolio, DSI unveiled in a statement to the Dubai Financial Market (DFM).

DSI has gained all its creditors’ support regarding the restructuring of its corporate general debt in the UAE, the company indicated.

The DFM-listed firm has reached a consensual agreement with nine regional and local banks in the fourth quarter of 2017 to refinance 56% or AED 566 million of its total corporate general debt standing at AED 1.07 billion as of 30 September 2017, the company said.

As per the agreement, the tenor and the maturity of the AED 566 million corporate general debt have been extended and re-termed on average for 3 years, the firm added.

Moreover, the company has been able to secure new credit lines and working capital facilities for its ongoing and future projects portfolio in the UAE upon the aforementioned agreement, DSI noted.

The remaining tranche of DSI’s corporate general debt of AED 440 million sukuk is due to maturity in November 2019, the Emirati company highlighted.

DSI will initiate talks with its sukuk holders to refinance this tranche in the second half of the fiscal year 2018.

Total bank debt of DSI amounted to AED 2.92 billion as of 30 September 2017, while corporate general debt and projects debt accounted for 34% and 66% of total bank debt respectively.

The company’s strategic priority includes a plan of restructuring and refinancing its projects debt with the initial focus on approximately AED 1 billion of funded projects debt in Saudi Arabia, DSI added.

DSI is concurrently in advanced talks with its creditors in Saudi Arabia, and is expecting to complete the refinancing of its Saudi projects debt in the first quarter of 2017, the company explained.

“The completion of our debt restructuring in the UAE will enable us to accelerate projects performance and delivery in Dubai and Abu Dhabi,” investor relations director at DSI Rabih Abou Diwan commented.

“Furthermore, with the new corporate debt structure and the extended credit facilities along with the funding we have in place, the Company will be able to improve productivity, secure substantial contracts and boost revenue generation,” Abou Diwan said.

“We are concurrently also assessing our funding requirements for our ongoing and future projects across all markets," he added.

“We expect to reach bilateral consensus with our lenders to refinance our projects debt and upon completion, we will be considering syndication across all the debt structure in the fiscal year 2018,” he continued.

Operation plans

Meanwhile, Tabarak Investment announced that it will be implementing its plans to support the operations of DSI to achieve full operational recovery leading to sustainable growth.

The Dubai-based investment company stressed that its investment in DSI is strategic and long-term and that it will maintain bolstering the construction engineering firm by completing existing projects, studying new ones targeted, and looking for new opportunities to diversify and expand income.

Tabarak Investment has confirmed a significant improvement in the efficiency of operations under the leadership of DSI’s new management, which will support DSI’s financial performance in 2018, the company added.