Dubai Duty Free seeks $1.1bn for DXB development
Retailer hires four cash giants to sell securities in return for loans
Dubai Duty Free is planning to leverage its position as one of the biggest airport retailers in the world by raising a $1.1bn loan to spend on the development of Dubai International Airport.
Dubai Airports last year announced it would invest $7.8bn in an airport expansion programme for Dubai International as it aims to boost its capacity from 60m passengers a year to 90m by 2018.
“The purpose is to optimise Dubai Duty Free’s capital structure in order to support the further development at Dubai International Airport,” said the airport retailer in a statement.
The retailer has hired Citibank, Dubai Islamic Bank, Emirates NBD and HSBC to manage its first foray into securities in order to obtain a loan anticipated to combine both Islamic and conventional finance.
Dubai Duty Free, which began trading in 1983, operates 18,000m2 of retail space at Dubai International and made revenues last year of $1.4bn.
Retail is one area of the economy that lenders are interested in financing; Dubai Duty Free accounts for 5%of global airport shop sales, according to Generation Research.