1st Aug 2019 14:43
(Alliance News) - ADES International Holding PLC, a oil and gas drilling and production services provider in the Middle East and North Africa, on Thursday said it has has secured a SAR300 million, or GBP66.2 million, long-term loan facility from Saudi Arabia based financial institution National Commercial Bank.
The loan has been secured against ADES 13 & 14, the company's recently built onshore rigs for Saudi Arabia. The loan will be used to optimise ADES's cost of funding and provide access to liquidity in accordance with the group's business strategy.
The loan has a 7-year tenure with a 12-month grace period. It bears fixed interest rate of 2.25% plus the variable rate of six months SAIBOR to be paid semi-annually.
"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," said ADES Chief Executive Officer Mohamed Farouk.
Shares in ADES were untraded at USD13.60 per share in London on Thursday.
Related Shares:
ADES.L