Monday 25 June 2018

Dubai Parks and Resorts... targeting completion in Sept 2016.

Goldman leads $1.15bn loan for Dubai theme parks

LONDON, November 13, 2014

Goldman Sachs is expected to sign a $1.15-billion project financing loan for Dubai Park and Resorts this week, which will finance the construction of a $2.9 billion amusement park complex in Dubai, UAE, banking sources said.

The loan has been underwritten by Goldman Sachs, which led and structured the deal, Abu Dhabi Commercial Bank, Commercial Bank International, Emirates National Bank of Dubai, and Noorbank, the sources said on Wednesday.

Dubai Park and Resorts is part of property developer Meraas Holding, which is owned by Dubai's Ruler Sheikh Mohammed bin Rashid Al Maktoum.

Construction of the amusement park, which will contain three linked amusement parks, Motiongate, based on films made by DreamWorks Animation and Sony Pictures, Legoland Dubai and Bollywood Parks, as well as hotels and shopping, is key to Dubai's drive to expand as an international tourist destination.

The project financing will fund construction of the parks, along with equity provided by Meraas investment group and the $689-million Initial Public Offering (IPO) of 40 per cent of Dubai Parks and Resorts, which was announced on Tuesday.

The 10-12 year project financing will benefit from support from Meraas and will be sold in a wider syndication that is expected to start shortly, bankers said.

The new 16-million-sq-ft entertainment complex in Jebel Ali will help Dubai meet its plans to double annual tourist numbers to 20 million in 2020 from 10 million in 2012, and treble tourism income in that time.

Work began on the project in February 2014 and completion is expected by the end of September 2016.


The IPO will be marketed to institutional and retail investors in the next two weeks. Book building will run from November 17 to 30 and is expected to close on November 27 for institutional investors and November 30 for retail investors.

Emirates NBD, Goldman Sachs and HSBC are joint global coordinators and joint bookrunners on the IPO along with EFG Hermes. Shuaa Capital is co-lead manager.

Qualified institutional investors will be eligible to buy 60 per cent of the 2.53 billion shares on offer at Dh1 ( $0.27) each.

Ten per cent of the offer will be allocated to retail investors, 25 per cent to wealthy individuals wishing to buy a minimum of five million shares each, and 60 per cent to institutions ordering at least 10 million shares.

The remaining five per cent is reserved for the UAE government's Emirates Investment Authority (EIA), as is the case on all UAE listings.

If the EIA does not take up the five per cent, those shares will be made available in the "natural persons" category. – Reuters

Tags: IPO | Goldman Sachs | project loan |

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