Dubai’s Mey­dan Group to close 600m dirham syndicated loan

Kuwait Times - - BUSINESS -

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

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