Modon Holding has secured Dh13.7 billion ($3.7 billion) in syndicated financing, its largest financing deal to date, as the Abu Dhabi-listed company looks to strengthen its financial position and fund its development pipeline.
The financing attracted strong demand from local, regional and international banks and was more than 1.5 times oversubscribed.
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The facility consists of a Dh4.7 billion five-year term loan and a Dh9 billion revolving credit facility with an initial three-year term, extendable to five years. It also includes an option to increase financing by a further Dh4 billion, providing additional flexibility.
Modon said the funds will be used to refinance existing facilities and support its development projects, while more than doubling the company’s average debt maturity and strengthening its liquidity.
Strong demand from lenders
The financing attracted participation from established and new banking partners, reflecting confidence in Modon’s growth strategy and diversified business portfolio.
The agreement includes both conventional and Islamic financing in UAE dirhams and US dollars, giving the company greater flexibility in accessing and deploying capital.
Modon’s operations span real estate, hospitality, asset and investment management, events, catering and tourism.
Matt Matharu, Group Chief Financial Officer of Modon Holding, said the financing represented an important milestone for the company.
“This financing marks a defining milestone for Modon and a clear endorsement of our strategy,” he said.
He added that securing flexible capital at this scale would strengthen the company’s balance sheet and support its ability to deliver development projects and pursue new opportunities.
Supporting future growth
The financing was provided by a group of banks including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates Islamic, Emirates NBD, First Abu Dhabi Bank, Mashreq, HSBC, Citi, J.P. Morgan, National Bank of Kuwait and Standard Chartered.
Rothschild & Co acted as the sole financial adviser on the transaction.
Modon said the agreement would support its long-term growth strategy while maintaining financial discipline and a prudent capital structure.
The company, headquartered in Abu Dhabi and listed on the Abu Dhabi Securities Exchange, operates across property development and several related sectors, with a focus on delivering long-term value through its diversified portfolio.
Source: Khaleej Times