The five-year loan will be provided by
Du declined to comment when contacted by Reuters.
The interest rate which du will pay for the new loan will be 140 basis points over the
Bankers not involved in the deal remarked that the pricing which du ultimately got from the three lenders was extremely cheap, especially as it had managed to negotiate a loan with a five-year lifespan.
"There have been talks for maybe 3-4 months between the company and banks but while they wanted five years, the most that banks were prepared to offer was three years – especially at the pricing levels they wanted," said one of the bankers not involved in the transaction.
Du's new loan will replace two existing debt facilities.
The first is a
It will also replace a
Du joins other companies which are currently raising cash to refinance existing debt, even if those facilities still have a substantial amount of time to run.
Emirates Steel is seeking
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