Airport retailer Dubai Duty Free has secured a USD$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 USD$1.1 billion financing facility to help fund the growth of Dubai 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.
Dubai Duty Free said the interest rate for the deal was 25 basis points lower than was initially proposed, but specific terms on pricing were not made available.
Citibank, Dubai Islamic, HSBC and Emirates NBD, Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank 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 USD$34 billion new Al Maktoum Airport facility designed to become the biggest in the world. The Dubai government raised USD$1.25 billion in April through an Islamic bond.