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28 March 2024

Dubai’s Meydan secures Dh1bn funding for new projects

Published
By Staff

Dubai-based Meydan Group on Sunday said it has raised Dh1 billion in Islamic finance from UAE banks.

The financing was raised on a dual tranche, offering and comprised a Dh700 million sukuk issue and a Dh300 million term facility, both maturing in 2024.

Abu Dhabi Islamic Bank acted as the sole coordinator and structuring bank for the financing, as well as a joint lead manager and book runner for the sukuk issue, along with Al Hilal Bank. They were joined by Sharjah Islamic Bank and Ajman Bank.

The deal was structured to meet Meydan’s financing objectives, which include enhancing its capital structure, diversifying investor base and earning additional funding for new projects.

Commenting on the development, Saeed Humaid Al Tayer, Chairman, Meydan Group, said: “This facility assists in realising our funding objectives to build strategic partnerships with local and regional financial institutions to continue our growth and enable us to fulfil our business strategy of linking the world with Dubai.”

Tirad Al Mahmoud, CEO, ADIB said: “We expect the structure of this deal will serve as a model for future mandates and helps to show that we are always assessing how we may help to push the boundaries of Shariah compliant financial solutions globally.”

In March 2016, Meydan signed a financing deal of Dh1.75 billion ($476 million) with Qatar National Bank (QNB), a financial institution in the Middle East and Africa, and its UAE subsidiary, Commercial Bank International to finance continued investment in infrastructure across its projects.

The company’s developments in Dubai include Mohammed Bin Rashid City - District One; Meydan One, which will house the world's tallest residential tower; Entisar, a 110-storey tower on Sheikh Zayed Road; Horizon development near Ras Al Khor Sanctuary and Mohamed Bin Rashid Al Maktoum City District Eleven.