The National Bank of Abu Dhabi (NBAD) has signed a deal to provide a 10-year term loan facility worth Dh1.2 billion ($326 million) to Abu Dhabi National Hotels (ADNH).

NBAD’s secured facility refinanced an outstanding debt under a syndicated term loan facility that ADNH had signed with four banks in January 2010, said a senior official.  

“This is a landmark transaction given the size of debt raised in the current competitive market. ADNH was successful in negotiating to enhance the terms and tenor in the refinancing facility, which will strengthen the financial performance of our company in the near future,” remarked Ignace Bauwens, the chief executive of ADNH.

Sheikh Ahmed Bin Mohammed Al Dhaheri, the vice chairman of ADNH board of directors, and Ahmed Seddiq Mohamed Khoori, the senior vice president of ADNH, represented the company at the signing ceremony.  

Mark Yassin, the co-head of wholesale banking and senior managing director of Global Banking, said: "This transaction underscores NBAD’s commitment and partnership towards the progress of the hospitality industry in Abu Dhabi and the UAE."

Rola Abu Manneh, the senior managing director and head of client relationships of NBAD, said: “We are confident this important deal will lead to future partnership with ADNH, which has a promising strategic investment plan and long term vision.”

ADNH is a public-traded company listed on Abu Dhabi Securities Exchange. It owns major hotels in Abu Dhabi, Al Ain and Dubai including the Ritz Carlton in Abu Dhabi, Park Hyatt in Saadiyat Island, and the Sofitel Jumeirah Beach Hotel in Dubai.-TradeArabia News Service