Gulf News

Dubai: The Dubai Government said on Sunday it has raised $635 million (Dh2.3 billion) in a syndicated facility and will pay the other $365 million from its resources to refinance an existing Dubai Civil Aviation Ijara facility of $1 billion maturing this month.

The government said the response to its fund-raising exercise, structured as a lease agreement in compliance with the principles of Islamic finance, was "particularly strong among international institutions".

The multi-currency facility will be paid back in three equal semi-annual instalments, starting in April 2010. The profit rate will be three per cent above the benchmark rates.

Dubai Islamic Bank Dubai Islamic Bank , Emirates NBD Emirates NBD , Noor Islamic Bank Noor Islamic Bank , Industrial and Commercial Bank of China and WestLB acted as mandated lead arrangers and book runners for the transaction. Mashreq Bank Mashreq Bank , Union National Bank Union National Bank and Commercial Bank of Dubai Commercial Bank of Dubai were the other participating banks.

The government said the finance deal demonstrates Dubai's continuing ability to manage re-financing requirements as they fall due.

"The encouraging response received for this syndication illustrates the strong confidence of investors in Dubai's economy. The Government of Dubai will continue to finance infrastructure projects with long-term borrowing as part of its ongoing long-term debt management strategy," said Nasser Al Shaikh, director-general of the Dubai Department of Finance.

Dubai Civil Aviation Dubai Civil Aviation had borrowed to fund the airport's $4.5 billion expansion, opening its chic Terminal 3 late last year.

Dubai entities have been repaying their loans in recent months and have insisted that they are fin-ancially stable.The Dubai Government has promised to assist its companies from the $10 billion it received in February from the UAE Central Bank.

© Gulf News 2009. All rights reserved.

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