Meydan Group agrees $120m loan with IDBI Bank
Money will be used to build housing project for Emirates airline staff
Meydan Group, the Dubai developer behind the world’s biggest horse-racing complex, will receive a $120m syndicated loan from India’s IDBI bank for its Meydan Heights project.
The state-controlled developer will use the capital to fund a 528-unit housing project for Emirates Airline staff, the company said at a media briefing Tuesday.
The Arab world’s largest airline said Monday it had purchased a plot of land for an undisclosed sum in the Meydan City development, on a 15-year lease-to-own basis.
The loan marks state-controlled IDBI’s first project financing deal in the Middle East and may pave the way for future agreements, said N S Venkatesh, CEO of the bank’s Dubai branch.
“Both Meydan Group and Emirates Airline are companies with international repute and IDBI is a long term project financier. We’ll have to look at the cash flows of the project coming in, but it’ll definitely be a longer tenure and we know this project will be a showpiece, a success,” he said.
Meydan Group CEO Saeed Al Tayer said the Emirates deal is the first of several to be announced this year.
“We’ve just announced the biggest construction deal for the last two years. That took a lot of effort from all team members,” he told Arabian Business.
“We aren’t going to stop with this deal. We have a few projects, they might not be of the same magnitude of Emirates, but are just as important, with international names. We’ll announce them during this year, definitely this year.”
Meydan City spans four districts; Meydan Metropolis business park, the racecourse and grandstand, Meydan Goldolphin parks, featuring a tower created in the image of a thoroughbred horse, and Meydan Horizons, which combines business towers and waterfront real estate.