Drake & Scull International (DSI) has received an interest-free “Qard Hasan” loan of up to AED 100 million ($27.2 million) from Tabarak Investment, as part of its capital restructuring program, the Dubai-listed firm said in a statement on Wednesday.
The withdrawal and payment methods of the loan, which is expected to improve the construction giant’s liquidity to win new projects, are yet to be agreed on and could potentially be implemented in tranches.
The loan will help the firm’s immediate working capital requirements until the completion of the restructuring program, which includes a capital increase of AED 500 million to push Tabarak Investment’s entry as a strategic investor.
DSI’s capital restructuring is currently underway, entailing the reduction of the company’s capital by 75 percent within a few weeks.
“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,” Wael Allan, DSI’s chief executive, said in the statement.
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