ADES secures US$80 million long term loan facility in KSA
(London & Dubai, 1 August 2019) ADES International Holding PLC ("ADES" or the "Company"), a leading oil & gas drilling and production services provider in the Middle East and North Africa (MENA), is pleased to announce that it has secured a SAR 300 million (US$80 million) Long Term Loan Facility ("the 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."
ADESInternationalHoldingextendsoilandgasdrillingandproductionservicesthroughitssubsidiariesandisaleading service provider in the Middle East and North Africa, offering onshore and offshore contract drilling as well as workover and production services.Itsc.4,000 employeesserveclientsincludingmajornationaloilcompanies("NOCs")suchas Saudi Aramco and Kuwait Oil Company as wellasjointventuresofNOCswithglobalmajorsincludingBPandEni. While maintaining a superior health, safety and environmental record, the Group currently has a fleet of thirty-four onshoredrillingrigs,thirteen jack-up offshore drilling rigs, ajack-upbarge,andamobileoffshoreproductionunit("MOPU"),whichincludesafloatingstorage and offloadingunit. For more information, visit investors.adihgroup.com
Certainstatementscontainedinthisannouncement,includinganyinformationastotheGroup'sstrategy,plansorfuture financial or operating performance constitute "forward looking statements". These forward-looking statements can be identifiedbytheuseofforwardlookingterminology,includingtheterms"believes","estimates","anticipates","projects", "expects","intends","aims","plans","predicts","may","will","seeks"or"should"or,ineachcase,theirnegativeorother variationsorcomparableterminology,orbydiscussionsofstrategy,plans,objectives,goals,futureeventsorintentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of the Directors of the Company concerning, amongst other things, the Group's results of operations, financial condition and performance, prospects, growth and strategies and the industry in which the Groupoperates.
By their nature, forward looking statements address matters that involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward looking statements are not guarantees of future performance and the Group's actual results of operations and financial condition, and the development of the business sector in which the Group operates, may differ materially from those suggested by the forward-looking statements contained in this announcement. In addition, even if the Group's results of operations and financial condition, and the development of the industry in which the Group operates, are consistent with the forward- looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
Create your account: sign up and get ahead on news and events
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...
Oil rig supplier ADES International Holding Ltd (LON:ADES) posted revenues 30% higher in 2018 as new rigs contributed for the first time and utilisation rates rose. Underlying profits rose by 26% to US$101mln.
Tekcapital PLC (LON:TEK) portfolio company Lucyd will start to sell three...