Dubai to get $3bn loan to fund DWC expansion
HSBC Holdings Plc is advising the government on the talks and an agreement is expected to be signed within weeks
Dubai will get a $3bn loan to fund the expansion of Dubai World Central and Al Maktoum International Airport in preparation for the Expo 2020, sources said.
The loan will include a $2bn conventional tranche and a $1bn Islamic portion which is currently being raised by a special-purpose company to pay for the expansion of DWC, Bloomberg reported.
According to sources close to the deal, Dubai will pay interest of 200 basis points, or 2 percentage points, above the London Interbank Offered Rate on the seven-year facility.
The government will pay a margin of 200 basis points over the Emirates Interbank Offered Rate on the Islamic facility.
HSBC Holdings Plc is advising the government on the talks and an agreement is expected to be signed within weeks, sources added.
Al Maktoum International is expecting an annual capacity of about 220 million passengers with plans to move flagship carrier Emirates by 2025.