Dubai Duty Free secures expanded US$1.75 billion loan
Source: BI-ME with Reuters , Author: Posted by BI-ME staff
Posted: Sun July 8, 2012 9:19 am

UAE. Airport retailer Dubai Duty Free has secured a US$1.75 billion loan facility that will be used to fund expansion of the emirate's international airport.

The six-year senior, unsecured syndicated credit facility will comprise a conventional term loan facility and Islamic facilities, the company said in a statement on Thursday.

The retailer had said in April that it mandated banks for a US$1.1 billion financing facility to help fund the growth of Dubai's international airport.

However, the size of the multi-tranche loan facility was increased following high interest from local and international lenders. The financing was significantly oversubscribed with support from a syndicate of 26 international, regional and local banks, the retailer said.

Duty Free said the interest rate for the deal was 25 basis points lower than what was initially proposed, but specific terms on pricing were not made available.

Citibank (C.N), Dubai Islamic DISB.DU, HSBC (HSBA.L) and Emirates NBD ENBD.DU, Abu Dhabi Commercial Bank ADCB.AD and Abu Dhabi Islamic Bank ADIB.AD acted as book runners and mandated lead arrangers.

Dubai, which has clawed back from the depths of a crippling 2009 debt crisis, has been examining ways of raising money to expand its existing aviation infrastructure after deciding to go slow on a US$34 billion new Al Maktoum Airport facility designed to become the biggest in the world. The Dubai government raised US$1.25 billion in April through an Islamic bond.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

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UAE. As of March 2014, and including the recent issuance, we estimate the government debt stood at US$54.8 billion (55.9% of GDP), compared to US$50.5 billion (55.5% of GDP) in the same period of last year.
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UAE. Managing an internationally mobile workforce can be challenging, particularly as home country and host country laws can be vastly different; Legal compliance with local laws may mean that it is not possible to impose global policies on the workforce.
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UAE. "Adapt to Survive", a global study by PwC, commissioned by LinkedIn, reveals the economic impact of not having the right people in the right jobs.
UAE. As of March 2014, and including the recent issuance, we estimate the government debt stood at US$54.8 billion (55.9% of GDP), compared to US$50.5 billion (55.5% of GDP) in the same period of last year.
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