Kuwait-based National Real Estate Company (NREC), one of the leading real estate companies in the Mena region, has announced the refinancing of a KD154.40 million ($536.4 million) loan facility.

The previous KD154.40 million loan facility consisted of a KD88.40 million ($307.1 million) short term loan and a KD66 million ($229.3 million) medium term loan. With the completion of the refinancing, the new loan facility now consists of a KD11 million ($38.2 million) short term loan and overdraft facility and a KD140 million ($486 million) long term loan to be repaid in seven years.

The company’s total debt level remains unchanged, a statement said.

Jamil Sultan Al-Essa, chairman of NREC said: “This refinancing is an important part of our continued focus on creating shareholder value. Aligning our capital structure with our strategic objective of being a Mena focused real estate company provides NREC with the financial strength to pursue exciting regional development opportunities.”

Sam Sidiqi, CEO of NREC said: “This new loan facility perfectly matches our assets and liabilities to enable us to achieve our growth plans. In addition to the extended maturities and improved covenants, NREC will benefit from a significantly enhanced working capital capacity.”

“The revised cost of debt will further support the underlying cash flows of the business. Our ability to successfully implement this refinancing is a reflection of the quality of NREC’s rental asset and development portfolio,” he added. – TradeArabia News Service