The government of Dubai has raised a $1.1 billion (Dh4.04 billion) loan that will be used to extend the city’s metro rail system, completing the first step of an infrastructure financing programme which could total as much as $2.8 billion, sources familiar with the matter said on Tuesday.
The metro extension is one of a number of large infrastructure projects linked to development of the Expo’s exhibition centre, which will itself require some $7 billion of financing.
The government approached banks for the metro expansion loan last year, asking for a commercial facility plus ECA-backed financing. First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, Santander and Standard Chartered have provided the loan, which has a 10-year tenor, said the sources.
Source Credit: Khaleej Times
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