Arabtec Holding (Arabtec) announced that it has reached an agreement with Aabar Investments (Aabar) regarding a AED400mn debt facility. The funds will be directly injected in the company’s operations to help project execution and delivery. The loan terms were not made public. We note that the agreement with Aabar (shareholder with a 36% stake) comes in line with the news released last month regarding Arabtec’s plans to hold discussions with the company’s major shareholders and banks to enhance the company’s capital structure. It also follows the news that came out yesterday regarding securing BHD107mn (cAED1.1bn) in debt facility jointly from Mashreqbank and Arab Bank to the Arabtec-TAV JV to fund the working capital requirements of the Bahrain International Airport project.   We note that while the drawdown of the new loan facilities is expected to add further upward pressure to Arabtec’s leverage ratios, the secured funding will likely reflect positively on projects execution and thus on the company’s reported revenue. (Company disclosure)   Arabtec (DU): AED1.50 as of 13 July 2016, Rating: Sell, FV: AED1.13 per share, MCap: USD1,886mn, ARTC UH / ARTC.DU