Dubai Duty Free (DDF) has announced its international financing deal – a $ 1.75 billion, six-year senior unsecured syndicated credit facility comprising a conventional term loan facility and Islamic facilities. The financing will fund the on-going expansion of Dubai International Airport.
The largest syndicated facility for a debut Dubai Government related entity since 2008, was closed significantly oversubscribed, with strong support from a syndicate of 26 international, regional and local banks.
Demonstrating demand for credits with strong fundamentals and appropriate financing structures, the transaction garnered a significant oversubscription which allowed DDF to exercise its right to upsize the facility from the initial launch amount of $ 1.1 billion and to successfully reduce the margin by 25 basis points.
Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Citi, Dubai Islamic Bank, Emirates NBD and HSBC acted as Bookrunners and Mandated Lead Arrangers.
Commenting on the Facilities, Colm McLoughlin, Executive Vice Chairman said: “We are extremely pleased with the very positive response that the transaction has elicited from the market and which enabled both an upsizing in the size of the financing and a tightening of the margin. The successful close of this transaction clearly highlights the confidence that the bank community has in DDF and just as importantly demonstrates that sentiment around and towards Dubai is continuously improving. All in all, this is a highly successful debut financing which sets a benchmark for DDF’s future funding strategy and allows us to focus firmly on implementing our development plans for the benefit of all stakeholders.”
Mandated Lead Arrangers on the transaction were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Citi, Dubai Islamic Bank, Emirates NBD, HSBC, Gulf International Bank, Al Hilal Bank, MashreqBank, Qatar National Bank and Commercial Bank International.Lead Arrangers on the transaction were Commercial Bank of Dubai, National Bank of Abu Dhabi, Samba Financial Group and Union National Bank. Arrangers on the transaction were Gulf Bank, BAWAG, Arab Bank, First Gulf Bank, Noor Islamic Bank, and Sharjah Islamic Bank.Junior Arrangers on the transaction were Ajman Bank, Ahli United Bank, Bank of Bahrain and Kuwait, National Bank of Kuwait and United Arab Bank.