The Dubai government said on Sunday that it has secured $3 billion in long-term financing for expansion and development of the Dubai International Airport (DXB) as well as the Al Maktoum International Airport (DWC).  

The signing of Airport Financing Company  (Finco) credit facilities was made by the Department of Finance for the Government of Dubai (DOF), the Investment Corporation of Dubai and Dubai Aviation City Corporation. The facilities represent the debut financing for Finco as part of the long-term funding platform established for Dubai Airports. HSBC acted as the financial advisor.

The facilities also signify the first stage of a larger funding programme which will transform DWC into the primary airport for Dubai and serve up to 146 million passengers by 2025.

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

“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 both 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,” said director general of DOF Abdulrahman Saleh Al Saleh.

The facilities comprise a $1.625 billion seven-year conventional and a $1.475 billion equivalent dirham denominated seven-year Ijara.

The final bank group consisted of 12 international and local banks who acted as joint mandated lead arrangers and joint bookrunners: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, 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, and Standard Chartered.

The facilities were heavily oversubscribed by more than 50 per cent and are a continued demonstration of the support for Dubai Government initiatives, a statement said.

DXB is the world’s largest international airport with 84.5 million passengers in 2016, representing a 12.7 per cent average compound annual growth rate since 2000. The new Al Maktoum International Airport (DWC) is planned to become the primary airport for Dubai as well as the home to Emirates Airline starting 2025. – TradeArabia News Service