The Department of Finance in Dubai on Wednesday announced that it has successfully completed a dual currency financing of $675 million (Dh2.48 billion).

 The proceeds from the facility will go towards the completion of phase 1 of the construction of the Al-Sufouh Tram project in Dubai.

The first phase of the project will see the construction of a 10km-long track starting from Dubai Marina and running all the way to the Knowledge Village.

The transaction comprises a 13-year $401 million loan which will amortize over 10 years starting 2015, and is guaranteed by the official government export credit agencies of Belgium (ONDD) and France (COFACE). The second portion of the transaction is a 6-year $274 million Islamic Ijara facility, split equally in US dollar and UAE dirham, and amortizing over three years, also starting 2015, according to the Department of Finance.

Abdulrahman Al Saleh, Director General of the Dubai Department of Finance, said: "We have seen a very encouraging response to this financing, which is a testament to the strong confidence that the international banks have in Dubai's economy, and the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai."

Al Saleh re-affirmed that the Dubai Government is continually examining ways to optimise its funding strategy. He said that export credit agencies financing (ECA) is a good proof of the success of this strategy.

"Through ECA, we have been able to achieve long-term financing at competitive rates while continuing to efficiently manage the Emirate's finances," he added.

Citibank, Deutsche Bank, and HSBC acted as mandated lead arrangers and underwriters for the financing.