Dubai’s Drake & Scull to Put Aside USD 272 mn for Debt Payments

Dubai’s Drake & Scull to Put Aside USD 272 mn for Debt Payments
A general view of a construction site of the Jumeirah Beach Residence is seen in Dubai, December 2, 2007. Jumeirah Beach Residence is considered the largest single-phase residential and commercial project in the world. Picture taken December 2, 2007. REUTERS/Steve Crisp (UNITED ARAB EMIRATES) – RTX4CLW

Dubai-based contractor Drake & Scull International (DSI) is expecting to have nearly AED 1 bn (USD 272 mn) of cash flow available over the next four years to partly repay its debt, Reuters reports.

The loss-making builder sent non-disclosure agreements to its lenders in April ahead of planned meetings to discuss the rescheduling of payments on existing debt and to seek support for its 2017-21 business plan.

DSI has been battling a depressed Gulf construction market, with governments reining in spending on infrastructure schemes as oil prices decline.

DSI estimates that it will have AED 956 mn of cash flow available for debt service (CFADS) over the next four years, which will be partly used to repay AED 2.6 bn of funded debt and AED 699 mn of interest costs, according to sources who have seen the business plan and spoke on the condition of anonymity.

Menna A. Farouk 368 Posts

Menna A. Farouk is a Cairo-based reporter. She has contributed to several international news organizations, including Deutsche Welle, Al-Monitor and Global Voices.

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