Dubai secures airport expansion investment

Eleanor Steed
By Eleanor Steed May 18, 2017 10:55

Dubai secures airport expansion investment

The Dubai government has secured $3 billion (Dh11 billion) in credit facilities to finance the expansion of Dubai’s two airports — Dubai International and Al Maktoum International (DWC). The credit facilities signify the first stage of a larger funding programme that will turn DWC into the emirate’s primary airport, serving up to 146 million passengers by 2025.

The deal comprises a $1.6 billion, seven-year conventional loan, and a $1.48 billion equivalent, seven-year ijara dominated in dirhams. Ijara is a common lease-based structure used in Islamic finance.

HSBC acted as the financial adviser on the deal.

The financing was raised by Department of Finance for the Government of Dubai, the Investment Corporation of Dubai, and Dubai Aviation City Corporation.

Twelve international and local banks acted as joint mandated lead arrangers and joint bookrunners including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China, Citibank, Dubai Islamic Bank, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China Limited, Intesa Sanpaolo, JP Morgan, Noor Bank and Standard Chartered.

The facilities were oversubscribed by more than 50 per cent.

Eleanor Steed
By Eleanor Steed May 18, 2017 10:55