Funding will be used to develop and expand both Dubai International Airport and Al Maktoum International Airport
Dubai’s government has said that it has secured $3 billion in long-term financing for the expansion of its airports, one of three multi-billion-dollar infrastructure projects that the emirate is planning to fund through debt, together with the building of the World Expo 2020 exhibition site and the expansion of the Dubai Metro.
The funding acquired will be used to develop and expand both Dubai International Airport and Al Maktoum International Airport, a Reuters report said. The facility signifies the first stage of a larger funding plan, which aims to transform Al Maktoum International Airport into the primary airport for Dubai, serving up to 146 million passengers by 2025.
The deal, which had HSBC acting as a financial advisor, includes a $1.63 billion, seven-year conventional loan, and a $1.48 billion-equivalent, seven-year Ijara facility denominated in dirhams, the report added.
Twelve international and local banks acted as joint mandated lead arrangers and joint bookrunners. These included Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China, Citibank, Dubai Islamic Bank, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, Intesa Sanpaolo, JPMorgan, Noor Bank and Standard Chartered.
Al Maktoum International plans to become the main airport for Dubai by 2025. It will also be home to Emirates Airlines by then.
The financing was raised by a consortium of Dubai state entities, Reuters said. These comprised of the Department of Finance, the state-owned investment fund – Investment Corporation of Dubai, and the Dubai Aviation City Cooperation.