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Average debt maturity of fertilizer makers increased from 1.3 years to 4.3 years
Fertiglobe also increased the size of its Revolving Facility (RCF) from $300 million to $600 million. – Profile photo
Abu Dhabi-listed fertilizer maker Fertiglobe, which counts state oil company Adnoc and OCI as major shareholders, has refinanced a $900 million bridge loan due in 2024.
The $900 million loan has been refinanced with new three-year $300 million and five-year $600 million term loans at interest rates of 150 basis points and 175 basis points, respectively, a company statement released over the weekend said. .
Fertiglobe also increased the size of its revolving credit facility (RCF) from $300 million to $600 million, reducing margins by 140 basis points from 175 basis points previously. The duration of the RCF has been extended from 2026 to 2027. The company has not withdrawn funds from this RCF.
The move has pushed Fertiglobe’s average debt maturity from 1.3 years to 4.3 years, improving liquidity and cash flow and will allow the company to pursue growth opportunities, the statement said.
Fertiglobe is the largest nitrogen fertilizer producer in the MENA region, producing 6.7 million tonnes of urea and commercial ammonia in the UAE, Egypt and Algeria.
It raised $795 million in an initial public offering on the Abu Dhabi Stock Exchange last year.
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