Dubai Duty Free seals syndicated loan

Dubai Duty Free seals syndicated loan

Published: July 9, 2012

State-backed company agrees US$1.75bn facility with 26 banks.

Dubai Duty Free, which runs duty free shops in Dubai International Airport, has closed its first international financing, a US$1.75bn, six-year senior unsecured syndicated credit facility with conventional and Islamic elements.

In the largest debut syndicated loan for a Dubai-backed company since 2008, the company drew together a syndicate of 26 international, regional and local banks. The company announced in April that it hoped to raise US$1.1bn, although this was upsized following oversubscription. The money will be used for the ongoing expansion of the airport.

Announcing the transaction, Dubai Duty Free’s executive vice-chairman Colm McLoughlin said: “The successful close of this transaction clearly highlights the confidence that the bank community has in DDF and just as importantly demonstrates that sentiment around and towards Dubai is continuously improving. All in all, this is a highly successful debut financing which sets a benchmark for DDF’s future funding strategy and allows us to focus firmly on implementing our development plans for the benefit of all stakeholders.”

Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Citi, Dubai Islamic Bank, Emirates NBD and HSBC acted as bookrunners and mandated lead arrangers (MLAs).

Other MLAs were Gulf International Bank, Al Hilal Bank, MashreqBank, Qatar National Bank and Commercial Bank International. Lead arrangers were Commercial Bank of Dubai, National Bank of Abu Dhabi, Samba Financial Group and Union National Bank.

Arrangers were Gulf Bank, BAWAG, Arab Bank, First Gulf Bank, Noor Islamic Bank, and Sharjah Islamic Bank, while Ajman Bank, Ahli United Bank, Bank of Bahrain and Kuwait, National Bank of Kuwait and United Arab Bank acted as junior arrangers.