Tuesday, April 24, 2012

Dubai duty free picks banks for $1.1b loan

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Airport retailer Dubai Duty Free has mandated banks for a $1.1 billion multi-tranche loan facility to help fund the expansion of Dubai airport, the company said last week.




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

Abu Dhabi Commercial Bank has already committed to contribute to the loan but will not be involved in arranging it.

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

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

Dubai, which has clawed back from the depths of a crippling 2009 debt crisis, has been examining ways of raising finances to expand its existing aviation infrastructure after deciding to go slow on a $34 billion new Al Maktoum Airport 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.

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