Dar Al-Arkan Q4 profit dips

Updated 08 January 2013
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Dar Al-Arkan Q4 profit dips

RIYADH: Saudi Arabia's largest real estate company, Dar Al-Arkan, said its fourth-quarter net profit halved from the same time the year before as finance costs rose and property sales generated lower margins.
Net income for the three months ending Dec. 31 was SR 144 million versus SR 290 million in the prior-year period. Gross profit in the quarter fell by 10.2 percent, the company said in a bourse statement.
Dar said its lower gross margins on property sales were "attributable to the geographical location of the properties". In the past, much of its profit has come from selling land in Saudi Arabia and it has said it is working on a plan to diversify revenue sources in order to stabilize its income. It also cited higher operating expenses and finance charges and lower non-operative income for the fall in profit.
The company said in November it had outstanding debt of around SR 4.4 billion, with sukuk of SR 750 million and SR 1.69 billion maturing in May 2014 and February 2015 respectively. It also has short-term murabaha Islamic loans with local and international banks, which it plans to roll over. Net profit for 2012 was SR 989 million, a fall of 9.1 percent from 2011.


Dubai Aerospace signs $480 million loan deal

Updated 21 May 2018
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Dubai Aerospace signs $480 million loan deal

DUBAI: Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft lessors, said on Monday it had signed a four-year loan deal for $480 million.
DAE, a government-controlled company set up in 2006, has become one of the world’s largest aircraft lessors after acquiring Dublin-based AWAS last year.
The acquisition tripled the Dubai aircraft leasing and maintenance company’s portfolio to about 400 aircraft worth more than $14 billion.
The $480 million loan, which includes both conventional and Islamic finance tranches, has a so-called “accordion facility” allowing it to be increased to up to $800 million.
With the loan, the company’s unsecured revolving credit facilities increase to between $1.125 billion and $1.445 billion, depending on final size of the latest deal, Firoz Tararpore, DAE’s chief executive, said in a statement.
“On a pro forma basis as of December 2017, if this facility is fully drawn and if the proceeds are used to pay down secured indebtedness, DAE’s percentage of unsecured debt would increase from 26 percent to a range of 31-34 percent.”
Last year, the company issued $2.3 billion in senior bonds split across three tranches last year, partly to finance the AWAS acquisition.
Tarapore said in an interview last week that DAE was in talks to buy a near-record total of 400 jetliners from Airbus and Boeing in an order that could be worth more than $40 billion at list prices.
Al Ahli Bank of Kuwait coordinated the latest loan deal and was also the lead arranger and joint bookrunner together with First Abu Dhabi Bank, while Noor Bank joined the deal as lead arranger.