Dubai Duty Free picks banks for US$1.1 billion loan
Source: BI-ME with Reuters , Author: Posted by Bi-ME staff
Posted: Mon April 9, 2012 1:11 pm

UAE. Airport retailer Dubai Duty Free has mandated banks for a US$1.1 billion multi-tranche loan facility to help fund the expansion of Dubai's international airport, the company said in a statement on Monday.

Citibank along with Dubai Islamic, HSBC and Emirates NBD have been hired to arrange and coordinate the debut international transaction, the company said in an emailed statement.

DDF, which is owned by Investment Corporation of Dubai, said the facility includes Islamic and conventional tranches.

Dubai was looking to raise at least US$500 million by selling debt based on future revenues at DDF, sources told Reuters last month.

"The purpose of the facilities is to optimise DDF's capital structure in order to support the further development at Dubai International Airport DIA.L," DDF said in the statement.

Dubai has been examining ways of raising finances to expand its existing aviation infrastructure, as it goes slow on a US$34 billion new facility designed to become the biggest in the world.

Its existing airport serves over 50 million passengers a year as the emirate attempts to leverage its position at the crossroads of air corridors between continents.

DDF said the syndication was launched on April 5 and banks have been invited to commit in U.S. dollars and UAE dirhams. Presentations would be held in Dubai during the week.

Sales at Dubai Duty Free, which covers a sprawling 18,000 square metres of retail space at Dubai International Airport, rose 15.7% to US$1.46 billion in 2011.

The operator, which sponsors high-profile sports events such as the Dubai tennis championship and is famous for lavish giveaways, has seen business boom on the back of sales of branded perfumes, watches and designer clothes.

Liquor, including some of the world's most expensive brands, also boosts sales as travellers and expatriates stock up in a country that largely restricts alcohol sales outside of hotels and restaurants.

Duty Free is expected to add an additional 8,000 square metres by the end of 2012.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: February 13, 2016
QATAR. The turmoil in financial markets at the beginning of this year has prompted some to question whether the US Federal Reserve should have increased interest rates in December.
date:Posted: February 13, 2016
KUWAIT. Kuwait has built up very large fiscal and external net asset positions over many years, which will continue to help it weather the current low oil price environment; The overall fiscal and external balance sheets will remain strong, backed by a significant stock of financial assets.
date:Posted: February 12, 2016
INTERNATIONAL. A Syria in which the regime and IS, rather than other rebel groups, are the only real domestic players turns Bashar al-Assad into a pivotal cog in the fight against jihadism. That is something Saudi Arabia cannot allow to happen. To turn the tide, it needs a United States that is engaged and willing to do its bit.
KUWAIT. Kuwait has built up very large fiscal and external net asset positions over many years, which will continue to help it weather the current low oil price environment; The overall fiscal and external balance sheets will remain strong, backed by a significant stock of financial assets.
dhgate
Monogram Ring