Dubai has secured a $3bn loan to finance the expansion of its two major airports.
The Department of Finance for the Government of Dubai (DOF), the Investment Corporation of Dubai and Dubai Aviation City Corporation signed up to borrow the funds from a syndicate of 12 international and local banks with HSBC acting as the Financial Advisor.
The signing represents the debut financing for Airport Financing Company FZE (FINCO) as part of the long-term funding platform established for Dubai Airports and signals the first step of a larger funding programme which will transform DWC into the primary airport for Dubai and serve up to 146 million passengers by 2025.
Dubai remains firmly committed to the development of the DWC and to the growth of the global aviation sector, and this initial USD 3 billion transaction to support Dubais ambitious 2025 passenger capacity targets is testament to our belief, said Chairman of Dubais Supreme Fiscal Committee HH Sheikh Ahmed bin Saeed Al Maktoum (pictured).
The facilities comprise a $1.625bn seven-year conventional and a $1.475bn equivalent AED denominated seven-year Ijara.
The final group of 12 banks consisted of Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank PJSC, 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 PJSC, and Standard Chartered.
While DXB is currently the worlds largest international airport with 84.5 million passengers as of YE 2016, it will eventually be outgrown by Al Maktoum International Airport (DWC) which is planned to become the primary airport for Dubai as well as the home to Emirates Airline starting 2025.