Consortium of banks includes ADIB, Al Hilal Bank, Sharjah Islamic Bank and Ajman Islamic Bank
Meydan Group has secured AED1 billion ($272 million) in financing from a consortium of banks which will be used to fund a series of ongoing projects, Gulf News reported.
The UAE-based developer has several projects in the pipeline including the Meydan One master-development, which is expected to feature the tallest residential building in the world.
The funding comprises of an AED 700 million ($190.5m) sukuk issue and an AED 300 million ($81.6m) term facility, both of which mature in 2024.
Abu Dhabi Islamic Bank was the sole coordinator and structuring bank for the financing, and also acted as the joint lead manager and bookrunner for the sukuk issue along with Al Hilal Bank.
Other banks that were part of this transaction include Sharjah Islamic Bank and Ajman Bank.
“This facility assists in realising our funding objectives to build strategic partnerships with local and regional financial institutions to continue our growth and enable us to fulfil our business strategy of linking the world with the emirate of Dubai,” said Meydan Group chairman and CEO Saeed Humaid Al Tayer.
Besides earning additional funding for new projects, the statement said that the deal would also help Meydan meet its other objectives which include enhancing capital structure and diversifying the investor base.
Tirad Al Mahmoud, CEO of ADIB, said: “This deal breaks new ground in a number of ways. It demonstrates our ability to bring together diverse elements to create a novel and highly effective solution for our client.
“It also evidences the results we are achieving by stepping up our corporate financing activity, with a particular focus on growing companies and real estate. We expect the structure of this deal will serve as a model for future mandates and helps to show that we are always assessing how we may help to push the boundaries of Sharia-compliant financial solutions globally.”