Modon Holding Secures AED 13.7 Billion Syndicated Financing in Abu Dhabi

Modon Holding, an Abu Dhabi-listed company, has successfully secured a AED 13.7 billion (USD 3.7 billion) syndicated financing deal, marking its largest financial agreement to date. This facility aims to bolster the company's financial standing and support its ongoing development projects across its diverse portfolio.

The financing package comprises a AED 4.7 billion five-year term loan and a AED 9 billion revolving credit facility, initially for three years with an option to extend to five. An additional option allows for an increase in financing by a further AED 4 billion, providing significant flexibility for future needs.

The deal was more than 1.5 times oversubscribed, attracting strong interest from a mix of local, regional, and international banks. This overwhelming demand reflects confidence in Modon's growth strategy and its varied business operations, which span real estate, hospitality, asset and investment management, events, catering, and tourism.

Modon Holding stated that the funds will be used to refinance existing facilities and advance its development projects. This move is expected to more than double the company's average debt maturity and enhance its overall liquidity. The financing includes both conventional and Islamic financing components, denominated in UAE dirhams and US dollars, offering greater capital deployment flexibility.

Key banking partners involved in the syndicate include 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 served as the sole financial adviser for the transaction.