Dubai World, which agreed to buy into MGM Mirage last month, is raising a $2.7 billion loan while its subsidiary Dubai Ports World is borrowing $2.5 billion, bankers said.

Government-owned Dubai World said last month it would invest up to $5.2 billion in MGM by buying shares in a Las Vegas project.

The bankers, who declined to be named, were not arranging the deal, but said they had been offered the opportunity to participate in syndication that started on Wednesday.

Dubai World was seeking a one-year loan priced at 85 basis points over the London Interbank Offered rate for the first six-months, and 110 basis points for the rest of the term, one banker said.

The Dubai Ports World's five-year revolving facility was priced at 45 basis points over LIBOR, the banker said. - Reuters