Jumeirah raises US$1.4bn with debut loan

Jumeirah raises US$1.4bn with debut loan

Published: October 31, 2013

Dubai-based hotel group secures US$1.4bn.

Jumeirah Group, a Dubai-based luxury hotel group, has received a US$1.4bn unsecured syndicated loan. Due in 2019, it was priced at 2.75% above LIBOR and represents the first time that the company has opted for a syndicated loan as a means of funding.

A spokesperson for the company told EMEA Finance: “Jumeirah has virtually no debt and represents a strong credit potential. A syndicated loan offered the most cost-effective means of raising debt and generating a more efficient balance sheet. The loan has been raised at very favourable rates in view of long-term financial planning and having a more efficient financial structure.”

The loan was arranged by Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD, HSBC, Mashreq and Standard Chartered with Rothschild taking an additional advisory role. The funding will go towards the company’s expansion plans as well as general corporate purposes.

Jumeirah Group’s global portfolio has increased by 8% since September last year with its revenue per available room increasing by 15%.
Syndicated loan volumes in the CEEMEA region stand at US$149.9bn in the year to date, a 45% increase on 2012. This volume increase comes despite the fact that only 225 individual loans have been struck, the lowest level of activity since 2009.