Dubai secures $3bn airports finance deal

Dubai's Department of Finance, together with the Investment Corporation of Dubai and Dubai Aviation City Corporation, has approved credit facilities worth $3bn for the Airport Financing Company FZE (FINCO)

HH Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai’s Supreme Fiscal Committee [image: Dubai Media Office].
HH Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai’s Supreme Fiscal Committee [image: Dubai Media Office].

Dubai has secured funding for the expansion and development of the Dubai International Airport (DXB) and the Al Maktoum International Airport (DWC). 

According to a Dubai Media Office report, the emirate’s Department of Finance, together with the Investment Corporation of Dubai and Dubai Aviation City Corporation, has signed the Airport Financing Company FZE (FINCO) $3bn credit facilities, for which HSBC served as the financial advisor.

The facilities reportedly represent the initial funding for FINCO as part of a long-term financing platform implemented for Dubai Airports, and comprise a $1.625bn, seven-year conventional credit as well as a $1.475bn equivalent AED denominated seven-year ijara. 

The final bank group consisted of twelve international and local banks acting as joint mandated lead arrangers and joint bookrunners, Dubai Media Office reported.

Those banks are Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank PJSC, Bank of China, Citibank, Dubai Islamic Bank, First Abu Dhabi Bank, HSBC, Industrial And Commercial Bank of China Limited, Intesa Sanpaolo, JP Morgan, Noor Bank PJSC, and Standard Chartered. 

The facilities are said to be heavily oversubscribed by more than 50%. 
 
In addition to being used for expansion and development activities for the emirate’s two airports, the credit facilities signify the first stage of a larger funding programme that will be aimed at transforming DWC into the primary airport for Dubai, expected to serve up to 146 million passengers by 2025.

HH Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai’s Supreme Fiscal Committee, commented: “Dubai remains firmly committed to the development of the DWC and to the growth of the global aviation sector, and this initial $3bn transaction to support Dubai’s ambitious 2025 passenger capacity target is testament to our belief.”

Abdulrahman Saleh Al Saleh, director general of DOF, said: “In line with Dubai’s vision to maintain its status as one of the world’s most important cultural and commercial centres, the planned expansion of the city’s airports is critically important, and our department is proud to play a vital role in their ongoing financing, just as we have with other similarly major projects.”

DXB is the world’s largest international airport with 84.5 million passengers as of YE 2016, representing a 12.7% average compound annual growth rate since 2000. DWC, meanwhile, is planned to become the primary airport for Dubai, as well as the home of Emirates Airline starting 2025.

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