Modon secures record AED 13.7 bn financing, more than doubling average debt maturity

ADX-listed Abu Dhabi developer Modon Holding secured its largest financing package yet at AED 13.7 bn (USD 3.7 bn), more than doubling its average debt maturity as it refinances existing borrowings and funds its development pipeline, according to a company statement (pdf). The financing was more than 1.5 times oversubscribed, reflecting strong lender demand for the developer’s debt.

Why it matters: The financing gives Modon more time to repay existing borrowings while securing access to capital for future developments, easing near-term refinancing pressure as it pursues projects in the UAE and overseas.

REMEMBER- Modon has a sizable development pipeline to fund, both at home and abroad. The ADQ-backed developer is the master developer of Egypt’s USD 35 bn Ras El Hekma megaproject, where it has been awarding major construction contracts. More recently, Modon was reported to be seeking an EGP 35 bn syndicated loan to fund infrastructure at Wadi Yemm, the project’s first district.

The breakdown: The package includes a AED 4.7 bn, five-year term loan and a AED 9 bn revolving credit facility with an initial three-year term, extendable to five years. Modon also has the option to increase the financing by up to AED 4 bn, subject to additional commitments. The facilities span conventional and Islamic financing in AED and USD.

Who’s bankrolling it? Lenders include our friends at Mashreq, alongside ADCB, ADIB, Emirates Islamic, Emirates NBD, FAB, HSBC, Citi, JPMorgan, National Bank of Kuwait, and Standard Chartered. Rothschild & Co advised Modon on the financing.

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