Dubai raises $675m for tram project
Dubai, February 22, 2012
Dubai's department of finance raised $675 million from a dual-currency loan to complete the first phase of its Al-Sufouh tram project in the emirate.
The facility comprises a 13-year $401 million loan which will amortize over 10 years starting 2015, the media office of Dubai government said in an email statement on Wednesday.
The loan is guaranteed by the official government export credit agencies of Belgium (ONDD) and France (Coface).
The second portion of the loan is a six-year $274 million Islamic Ijara facility amortizing over three years starting 2015. The facility is split equally in dollars and dirhams.
Citigroup, Deutsche Bank, and HSBC were mandated as lead arrangers and underwriters for the financing, the statement said.
The first phase of the Al-Soufouh Tram project will see the construction of a 10km-long track starting from Dubai Marina and running all the way to the Knowledge Village.
Liquidity woes had delayed the progress of the project as Dubai's Roads and transport Authority (RTA) struggled to meet payment in the wake of the global slowdown. The tram was initially scheduled for completion in 2011.
Dubai also closed a $800 million financing deal with lenders based on securitising road toll receipts in July last year. The dual currency, six-year financing was expected to support RTA's infrastructure projects.-Reuters
More Construction & Real Estate Stories
- New Tekla software accelerates information flow
- Damac unveils first Trump Estates in ME
- GFH in key London property placement
- Green Valley unveils new UAE, Turkey projects
- Jotun colour collection tracks new trends
- RAK Properties to distribute $27.2m profit
- Top construction firms head to Bahrain
- Investors pull out of $65m Bahrain project
- Projects stalled in Bahrain due to 'mismanagement'
- Emaar rules out plans for new tall tower
- Barwa net profit surges 27.3pc
- RAK Properties adds new villas to Flamingo project
- Saudi launches housing scheme to ease shortage
- R&M wins Oman residential project contract
- Asian skyscraper prices tower over rest of the world
- Tamleek opens new office in Dubai
- $29m allocated for Bahrain drainage projects
- Indian group plans $300m Bahrain Bay investment
- Drake and Scull awards key supply contract
- FCC wins $702m Doha metro line contract
- SPF Realty sees Dubai project success
- Abu Dhabi set for big property show
- Aldar working on $1.5bn UAE housing projects
- Gulf Finance House to start $3bn Tunisia project
- Abu Dhabi to see 10pc surge in new homes
- Saudi construction sector booming on new contracts
- Emaar offers 330 apartments in MBR City
- Dubai Design District sees big demand
- HUGE DEAL: Arabtec inks $40bn Egypt housing project
- Galfar ex-CEO gets 15 years' jail over bribes