Dubai raises USD 635 mn to refinance debt - Chinese and local banks involved
Simeon Kerr reported in The Financial times on 5 April that the Dubai government raised a
USD 635 mn Islamic finance to help retire a USD 1 bn in civil aviation authority debt maturing later this month.
The lease-based Islamic facilty syndication, led by Dubai Islamic Bank, mainly depends on local banks, but Industrial & Commercial Bank of China and WestLB also participated in the syndication, which was priced at 3 % points above US, UAE and euro benchmark rates. It is due to be repaid in three equal semi-annual instalments from April 2010.
It was the first Islamic transaction for the Industrial & Commercial Bank of China with a branch in the DIFC.
Dubai is preparing to seek a sovereign rating in the second half of this year.
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