DSI Completes UAE Debt Restructuring with Announcement of Continued Support from Tabarak Investment

Drake & Scull International PJSC (" DSI" or the "Company"), a regional leader in engineering and construction services announced today, that it has successfully completed the restructuring of its corporate general bank financial obligation in the UAE and has actually safeguarded new credit limit and functioning funding centers for its continuous and new tasks portfolio.

DSI has actually acquired the assistance from all its lenders for the restructuring of its corporate general financial obligation in the UAE. The company got to in Q4 2017 a consensual contract with nine regional and local banks to re-finance AED 566 million consisting of 56% of its total corporate general financial obligation standing at AED 1.07 billion as of September 30th 2017. The tenor and the maturity of the AED 566 million company general financial obligation have actually been expanded and re-termed generally for 3 years. Additionally, the Company successfully secured under the new term sheets joined bilateral basis with all corresponding financial institutions, new line of credit and functioning funding centers for its continuous and future tasks portfolio in the UAE.

The continuing to be tranche of the Company's company general debt consisting of the AED 440 million Sukuk will grow in November 2019. The Company will initiate talks with its sukuk holders to refinance this tranche in the fiscal of the 2018.

As of September 30th 2017, the total Bank Debt of the Group stands at AED 2.92 billion. Business general debt and tasks debt consist of 34% and 66% of total bank financial debt respectively.

Another upcoming calculated priority of the Company's strategy consist of the restructuring and refinancing of its projects financial debt with the first focus on about AED 1 billion of financed projects debt in Saudi Arabia. The Company is concurrently in advanced talks with its lenders in KSA and anticipates to finish the refinancing of its Saudi jobs financial debt in this quarter.

Rabih Abou Diwan, Investor Relations Director, Drake & Scull International PJSC, commented:

The latest deal with the Banks reflects the confidence in the DSI turnaround plan, the resilience of the Groups business model and the positive outlook of the Company in the MEP sector, despite the cyclical challenges that impacted the regional construction industry.

Our main objective is to drive a consensual restructuring plan with all our creditors across the region to rebalance our capital structure to be more efficient and conducive for our business plan and future prospects.

The completion of our debt restructuring in the UAE will enable us to accelerate projects performance and delivery in Dubai and Abu Dhabi. This represents a key priority for the Group as we continue to streamline the business and unlock value across all operating segments.

Furthermore, with the new corporate debt structure and the extended credit facilities along with the funding we have in place, the Company will be able to improve productivity, secure substantial contracts and boost revenue generation.

We are concurrently also assessing our funding requirements for our ongoing and future projects across all markets. We expect to reach bilateral consensus with our lenders to refinance our projects debt and upon completion we will be considering syndication across all the debt structure in the fiscal year 2018.

Combined with the conclusion of Drake & Scull's financial obligation restructuring, Tabarak investment has revealed that it is continuing with its plans to support the operations of Drake & Scull International to accomplish complete operational recuperation leading to sustainable development. The company has assured that its financial investment in DSI is calculated and long-term, which it will certainly continuously support the last by completing existing tasks, researching new ones targeted with Tabarak, and trying to find new possibilities to branch out and expand earnings. Tabarak Investment has verified a considerable renovation in the efficiency of procedures under the management of DSI's new management, which will sustain the latter's financial performance in 2018.