Airport retailer Dubai Duty Free has increased the size of a multi-tranche loan facility it is currently raising to USD$1.5 billion, driven by high interest from local and international lenders, a senior Dubai government official said on Monday.
“We are raising USD$1.5 billion and we are getting almost close to double that in terms of interest but hasn’t been concluded yet,” Mohammed Al Shaibani, the chief executive of Investment Corporation of Dubai said.
“There is an opportunity and commercial banks know exactly what to go for,” added Shaibani.
Dubai Duty Free had said in April it mandated banks for a USD$1.1 billion financing facility to help fund an expansion at Dubai airport. The facility includes Islamic and conventional tranches.
Citibank along with Dubai Islamic, HSBC and Emirates NBD have been hired to arrange and coordinate the debut international transaction.
Abu Dhabi Commercial Bank has committed to contribute to the loan but will not be involved in arranging it.
Dubai, which has clawed back from the depths of a crippling 2009 debt crisis, has been examining ways of raising finances to expand its existing aviation infrastructure after deciding to go slow on a new USD$34 billion Al Maktoum Airport facility designed to become the biggest in the world.
The government raised USD$1.25 billion earlier this month through an Islamic bond.