Dubai Holding signs $1.16bn syndicated loan

Dubai Holding has signed a $1.16 billion (Dh4.2bn), three-year syndicated bullet term loan, banking sources said.

Arranging banks on the deal are Mashreq bank and Morgan Stanley. The loan, which has both a conventional and an Islamic facility, pays a margin of 150 basis points (bps) over Libor/Eibor. The syndicate comprises a total of nine banks. Merrill Lynch, Noor Islamic Bank, Standard Chartered Bank, Bank of Tokyo-Mitsubishi, Calyon, Emirates NBD and Union National Bank joined the deal. Dubai Holding is just one of several commercial subsidiaries of the Government that are currently securing syndicated loans.

Dubai World unit Port & Free Zone World, Dubai Financial, Dubai Drydocks, Dubai Aerospace Enterprise, Palm District Cooling, DIFC Investments and Investment Corporation of Dubai (ICD) are currently syndicating $14bn of loans in the market. Dubai Holding's portfolio includes developers Tatweer, Dubai Properties, Sama Dubai, hospitality group Jumeirah and Tecom.

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