Dubai’s Meydan Group to close 600m dirham syndicated loan
Dubai’s Meydan Group, which specializes in real estate projects in the commercial, hospitality and entertainment sectors, will close by the end of next week a 600 million dirham ($163 million) syndicated loan, sources close to the situation said.
The debt facility, arranged by Commercial Bank of Dubai, will be used to finance a hotel project. The deal was initially expected to reach completion by the end of November.
The company declined to comment. Meydan, mostly known for the Meydan racecourse facility in Dubai, is the developer of Meydan City, a 47 million square foot project including residential, commercial and mixed-use buildings. It has raised financing from local and regional banks over the year, in a sign that major real estate developments continue in Dubai despite the regional economic slowdown caused by low oil prices.
Earlier this year, Meydan obtained a $476 million loan from Qatar National Bank and QNB’s United Arab Emirates affiliate Commercial Bank International. The company also raised 1 billion dirhams of Islamic financing in June to strengthen its capital structure, diversify its investor base and support new projects. That financing comprised 700 million dirhams of sukuk and a 300 million dirham term loan. — Reuters