Kuwait-headquartered real estate developer Al Mazaya Holding has inked Islamic financing agreements with a local bank worth $90.4m (KD27.5m), just weeks posting a 42% decline in 2018 year-on-year net profits.
The deals will be used in “reprofiling the existing outstanding debt value with the same bank” and to finance the group’s “real estate operations”, according to a filing on Dubai Financial Market (DFM), where the group is listed.
The move, it added, will improve cash flows and its liquidity, in-turn supporting the company’s “ability to honour its commitments towards its operations, real estate projects, and other creditors as well”.
The name of the participating bank was not listed in the group’s latest bourse missive.
The news comes after a financially lacklustre year for the group in 2018.
March this year saw the developer report net profits of $19.2m (KWD5.8m) for the twelve months ending 31 December, a 42% decline on 2017’s corresponding figure of $27.5m (KWD8.3m).
In an Arabic-language statement released on the company’s website, Ibrahim Abdulrahman Al Saqabi, chief executive officer of Al Mazaya Holding, said sales revenues were affected by a decline in the regional markets that the developer operates in.
Among the Al Mazaya Holding projects that progressed in 2018 is the Mazaya Downtown scheme in Al Sharq, Kuwait, on which Pace has worked with the development company.