LONDON,(Reuters) – Dubai Holding, owned by the ruler of the wealthy emirate, has signed a $1.16 billion, three-year syndicated bullet term loan, banking sources said.
Arranging banks on the deal are Mashreqbank and Morgan Stanley.
The loan, which has both a conventional and an Islamic facility, pays a margin of 150 basis points (bps) over LIBOR/EIBOR.
The syndicate comprises a total of nine banks. Merrill Lynch, Noor Islamic Bank, Standard Chartered Bank, Bank of Tokyo-Mitsubishi UFJ, Calyon, Emirates NBD and Union National Bank joined the deal.
Dubai Holding is just one of several commercial subsidiaries of the government of Dubai that are currently securing syndicated loans.
Sovereign-backed Dubai World unit Port & Free Zone World, Dubai Financial, Dubai Drydocks, Dubai Aerospace Enterprise, Palm District Cooling, DIFC Investments and Investment Corporation of Dubai (ICD) are currently syndicating $14 billion of loans in the market.
The Dubai Holding portfolio includes developers Tatweer, Dubai Properties and Sama Dubai, hospitality group Jumeirah and Tecom Investments, which has a stake in the United Arab Emirates’ second mobile operator.