Dubai gets $3b airports finance deal

dubai — The Dubai government on Sunday said that it had secured $3 billion in long-term financing for expansion of its airports.

The deal, for which HSBC acted as financial adviser, included a $1.63 billion, sevenyear conventional loan and a $1.48 billion-equivalent, sevenyear ijara facility denominated in dirhams. Ijara is a common lease-based structure used in Islamic finance.

In a statement, the Department of Finance for the Government of Dubai, the Investment Corporation of Dubai and Dubai Aviation City Corporation, have announced the successful signing of $3 billion credit facilities that will be used for the expansion and development of Dubai International Airport as well as Al Maktoum International Airport and signify the first stage of a larger funding programme which will transform DWC into the primary airport for Dubai, serving up to 146 million passengers by 2025.

“Dubai remains firmly committed to the development of DWC and to growth of the global aviation sector, and this initial $3 billion transaction to support Dubai’s ambitious 2025 passenger capacity target is testament to our belief,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority, Chairman of Emirates Group and Chairman of Dubai’s Supreme Fiscal Committee.

— business@khaleejtimes.com