Abu Dhabi’s AD Ports considering trade routes and acquisitions

DUBAI, Feb 8 (Reuters) – Abu Dhabi’s AD Ports Group (ADPORTS.AD) plans to develop vast trade corridors linking the United Arab Emirates, the Middle East, the subcontinent, Africa and beyond, executives said Tuesday, following his part. SEO.

AD Ports Group, controlled by state-owned investor ADQ, floated on the Abu Dhabi Stock Exchange on Tuesday after raising 4 billion dirhams of proceeds on the primary issue. Read more .

Its stock opened at 3.5 dirhams ($0.9530) per share and briefly hit 3.74 dirhams before closing at 3.59 dirhams on Tuesday, according to Refinitiv data.

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“Our main strategy driver is to develop large trade corridors that are particularly important to Abu Dhabi,” said Ross Thompson, Director of Strategy and Growth, AD Ports Group.

AD Ports Group operates the deep water port of Khalifa in the emirate of Abu Dhabi, as well as other ports and logistics parks, and the port of Fujairah in the Indian Ocean. It also operates a facility in Guinea.

“We have a very solid balance sheet. We have the ambition to grow,” chief financial officer Martin Aarup said in an interview, adding, however, that the group was in no rush.

“We want to do good business. We have a strong pipeline and are constantly looking for (targets).”

The group was interested in investing in ports, logistics, maritime and digital, Aarup said.

With the capital injection, AD Ports had a strong balance sheet and low leverage, he said. The company raised $1 billion in 10-year bonds last year and had an undrawn revolving credit facility of nearly $1 billion, the company said in an email.

“As part of growth and our growth strategy, we will need to raise additional funds, also on the debt side,” Aarup said.

“When we issued our first bond last year, we did so as a program and therefore also indicated that we would return to the market. The timing will depend on when growth opportunities materialize.”

AD Ports said its port business accounts for around 30% of its annual revenue, while industrial and logistics parks account for around 33%. It has an expected compound growth rate of around 13%, he said.

($1 = 3.6726 UAE dirhams)

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Reporting by Hadeel Al Sayegh, Saeed Azhar, Alexander Cornwell; Editing by Clarence Fernandez and Emelia Sithole-Matarise

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