DSI guaranteed up to AED 100 million investment

09/08/2017 09:59 AST

Drake & Scull International PJSC, a regional market leader in engineering and related services, will receive an interest-free 'Qard Hasan' loan of up to AED 100 million from Tabarak Investment as part of DSI's capital restructuring programme.

The loan will help meet the immediate working capital requirements of DSI until it completes its capital restructuring programme which includes a capital increase of AED 500 million to expedite Tabarak Investment's entry as a Strategic investor. The withdrawal and payment mechanisms of the loan will be mutually agreed upon by the two parties and could be implemented in tranches.

"The extension of this loan from Tabarak Investment will ensure business continuity particularly by addressing our immediate working capital requirements under the initial phase of our capital restructuring programme. We appreciate Tabarak's full support as we realign the company towards long-term financial stability and profitability," said Mohammad Atatreh, Board Member, Drake & Scull International PJSC.

Ahmed Kilani, CEO, Tabarak Investment, added that the loan is intended to ensure that DSI's restructuring programme proceeds as smoothly and as swiftly as possible.

Phase one of DSI's capital restructuring programme is currently underway and will see the company's capital officially reduced by 75 per cent within a few weeks. The loan from Tabarak will bridge DSI's working capital requirements and improve its liquidity position as it positions itself to win new project awards.

"Tabarak Investment's loan is a key development that will further ensure the success of our efforts to direct DSI towards a new period of financial and operational success. We assure our stakeholders that our programme is proceeding according to plan and will soon position us for further growth," said Wael Allan, CEO, Drake & Scull International PJSC.

CPI Financial