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Dubai: Future Pipe Industries Group Ltd., the Dubai-based fiberglass pipe maker that last month dropped plans for an initial share sale, is borrowing $150 million from a group of about 12 banks to refinance old debt.
HSBC Holdings Plc and Mashreqbank PSC are helping Future Pipe get its three-year loan, which pays interest of 1.4 percentage point more than benchmark rates, Chief Financial Officer Omar Ashur said in a phone interview from Dubai today.
"We've got about $250 million of shorter term loans that we're partially refinancing with medium-term debt,'' Ashur said.
Founded in 1984, Future Pipe has 11 factories in the Middle East, U.S. and Netherlands, according to its Web site.
On May 1 it withdrew its $487 million IPO to list on the Dubai International Financial Exchange, citing poor conditions in global financial markets.
Future Pipe is unlikely to need to borrow again before 2009, Ashur said. Money that would have been raised from the IPO was due to be paid to shareholders, so the sale's cancellation doesn't affect the company's corporate finance needs, he said.
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