A one-off
bullet payment from cash reserves has reduced its stadium related debt from pounds 32m to pounds 25m - and follows on from a debt reduction of pounds 10m in 2008.
Areas where deliveries were made (mainly Downtown Burj Khalifa and Dubai Marina) lead the declines as buyers seem to be offloading their properties ahead of the final
bullet payment. Nonetheless, a slight rebound was recorded in December 2009 with agreed prices rising 3 per cent MoM.The Abu Dhabi property market outperformed that of Dubai in 2009, despite roughly 90 per cent of transactions being off-plan.
The principal investment amount will be returned as a
bullet payment on maturity.
The facility is repayable in one
bullet payment within 3 years, from the proceeds of a future Islamic Finance Facility or a Sukuk issue (the mandate for which has already been awarded to Badr Al Islami, Mashreqbank psc).
The company's robust liquidity, which is supported by cash and available credit lines, well-spread maturities, and demonstrated access to capital market mitigate the refinancing risk arising from the
bullet payment of bonds.
"Supported by the efforts exerted to execute the restructuring plan, renovation of the bank's infrastructure, improvement of human resources together with the support of the bank's parent company Abu Dhabi Islamic Bank in United Arab Emirates, ADIB - Egypt was able to achieve profit in the first quarter of the current year after the bank paid off EGP 956 million to cover the provisions gap in one
bullet payment, two years ahead of the assigned date."
The proposed debentures will have a five-year maturity with principal repayment as a
bullet payment on maturity, with coupons to be paid on a semi-annual basis at a fixed rate.
ABM's US dollar bond replaced its amortising term loan, which was due in 2021, with a
bullet payment in 2022.
The proposed debentures have a five-year maturity with principal repayment as a
bullet payment, and have both fixed and floating coupons, which will be paid on a semi-annual basis.
Liquidity risk is low for the next two years, as liquidity gaps are positive; nevertheless, refinancing risk increased as the majority of its debt will mature in a
bullet payment in five years.
