RAK Hospitality sounds out for debt financing
RAK Hospitality Holding, a United Arab Emirates company controlled by the government of the emirate of Ras Al Khaimah, is in talks with banks about a debt-raising exercise, bankers said. The entertainment and hospitality group is considering both a loan and a bond issue which, according to the bankers, could be smaller than the 880 million dirham ($240 million) debt transaction which the company concluded in May last year. “We constantly assess how our expansion plans can be appropriately funded and as you would expect from an enterprise of our scale, hold discussions with our banking partners about potential ways to do this. We are unable to comment further,” the company’s chief executive, Yannis Anagnostakis, told Reuters via email. No bank mandate has been awarded yet for the potential new debt transaction, bankers said. RAK Hospitality’s 880 million dirham debt facility was an eight-year syndicated loan raised to back the acquisition of two hotels and the refurbishment of two more hotels, and to consolidate and refinance existing company debt.