Dubai has secured $3 billion credit facilities for the expansion of its two airports.
The Department of Finance for the Government of Dubai, the Investment Corporation of Dubai and Dubai Aviation City Corporation, advised by HSBC, announced the funding agreement and the establishment of Airport Financing Company FZE (FINCO), the long-term funding platform for Dubai Airports, according to news agency WAM.
The financing will be used for the expansion and development of Dubai International Airport (DXB) and Al Maktoum International Airport (DWC).
Sheikh Ahmed, chairman of Dubai Civil Aviation Authority, chairman of Emirates Group and chairman of Dubai’s Supreme Fiscal Committee, said it will signify the first stage of a larger funding programme that will transform DWC into the primary airport for Dubai, serving up to 146 million passengers by 2025.
“Dubai remains firmly committed to the development of DWC and to growth of the global aviation sector, and this initial $3 billion transaction to support Dubai’s ambitious 2025 passenger capacity target is testament to our belief,” said Sheikh Ahmed.
Abdulrahman Saleh Al Saleh, director general of Department of Finance for the Government of Dubai, said, “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.”
The credit facilities comprise a $1.625 billion seven-year Conventional and a $1.475 billion equivalent AED denominated seven-year Ijara.
The final bank group consisted of twelve international and local institutions who acted as Joint Mandated Lead Arrangers and Joint Bookrunners. The facilities were heavily oversubscribed by more than 50 percent and are a continuing demonstration of the support for Dubai Government initiatives.
DXB is the world’s largest international airport, with 84.5 million passengers as of year-end 2016, representing a 12.7 percent average compound annual growth rate since 2000. The new Al Maktoum International Airport is planned to become the primary airport for Dubai as well as the home to Emirates Airline starting in 2025.