International investment banking group Chescor Capital has arranged a JD110 million ($155 million, Dh568m) syndicate loan for Jordan's Abdali Boulevard, a mixed-use development in Amman.
Jordan's Arab Bank led the syndicate loan. Chescor Capital, working as financial advisor to Abdali Boulevard, negotiated a 12-year loan following a competitive tender between local and regional banks. The loan is secured on very attractive terms based on the rates for Certificate of Deposits issued by the Central Bank of Jordan, and represents the largest syndicated loan extended to a private sector project by the Jordanian banking sector.
The Boulevard comprises a 370 metre-long and 21 metre-wide pedestrian area which will link the business and residential component of the Abdali Project.
The project looks set to revitalise Amman's bustling city centre, and establish a business and residential quarter to rival that of any other city in the world.
Abdali Boulevard Chief Executive Officer Jamal Itani said: "The Abdali Boulevard loan, combined with national and foreign direct investment, is clearly a compelling model for funding more shopping, tourism and business destinations, and helps the national economy to create new job opportunities for Jordanian youth. It has been an honour to work with some of the region's leading financial bodies to conclude this arrangement and we look forward to working with more of them in similar future transactions."
Chescor Capital Executive Director Nasri Tehini said: "Despite the scale and complexity of the facility, its successful close on a limited recourse basis was largely due to the quality of the project, but also to the introduction of a number of novel features especially in terms of securities and covenants.
"Over and above that, the loan reflected the long term commitment of the Jordanian financial institutions to project finance for key private sector developments, despite market jitters caused by the sub-prime crisis. It was a pleasure working with our Jordanian partners and we look forward to establishing a permanent presence."