Saturday, September 4, 2010

Noor Investment to Reschedule KD187 Million

Al Watan reports that Noor Investment Company is ready to sign a KD187 million restructuring with KFH, the lead bank.  

The rescheduling:
  1. Converts short term to medium term debt
  2. Carries an interest rate of 3.5% p.a. down from 5.5% - a savings of roughly KD4 million.  (I make it more like KD3.50 million the first year assuming that payments the first year are modest).
  3. Will be repaid from cash profits and not from asset sales
  4. Will commence with the first repayment in early 2011
As per Noor's 30 March 2010 financials (the latest posted on their or the KSE website), total bank debt was some KD184.5 million - with interest at 5.5%, the amount would be KD187 at 30 June.  Note that total bank debt appears in two places:  KD181 million shown in Note 11 and KD3.5 in Note 7.   All of the bank debt was due within one year.

Noor is owned 50.8% by National Industries Group.

Previous posts can be accessed using the tag "Noor Investment Company".

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