Carillion bags UK loan for Dubai World Trade Centre project
Loan arranged by Deutsche Bank and guaranteed by UK Export Finance
Carillion has secured a loan from the UK’s Direct Lending Facility for the Dubai World Trade Centre District.
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Carillion has become the first company to benefit from the UK government’s Direct Lending Facility, helping it finance a $120.6 million contract at the Dubai World Trade Centre District.
The British construction firm has secured a $54.7 million loan to finance the Dubai project, which was awarded last March, according to an announcement by the UK’s Chancellor of the Exchequer.
The loan was arranged by Deutsche Bank and guaranteed by UK Export Finance.
The contract is for phase one of the Dubai World Trade Centre District, involving construction of a 146,000 sq. m development between the Dubai International Convention and Exhibition Centre and Emirates Towers. The project will include an eight-storey office building as well as a 588-room hotel.
The development is much needed due to “a lack of good quality office space” in Dubai, said Matthew Green, head of research at CBRE. It will see “solid demand” due to its prime location, he added.
Under the direct lending facility, the UK’s HM Treasury has made $4.8 billion available to support export finance on a first come, first served, basis.
“Helping British companies to access global markets is a key part of our long term economic plan,” said George Osborne, Chancellor of the Exchequer, quoted in a statement.
“So I’m delighted to announce the first deal supported by UK Export Finance’s Direct Lending Facility, along with the twenty financial institutions that are going to help us deliver the loans. This deal, the first in a pipeline of many will help us reverse the age old trend of not exporting enough, boosting growth and creating jobs.”
In a statement to Big Project ME, Carillion said that construction on the project was in progress, with a completion date targeted at the end of 2015.
“Winning the DWTC District Phase One contract builds on our success in the Middle East region, where we have operated for around 50 years and have a substantial business, with a reputation for high standards of quality, reliability, health and safety and sustainability,” the contractor said.
