Monday, Apr 09, 2012
DUBAI (Zawya Dow Jones)--Dubai Duty Free, the state-owned company that operates tax-free shops at the Dubai International Airport, plans to borrow $1.1 billion from banks to fund its further expansion at the global air transport hub.
Dubai Duty Free has mandated Citibank, Dubai Islamic Bank PJSC, Emirates NBD Capital Ltd. and HSBC Bank Middle East Ltd. to arrange and coordinate the company's first international financing transaction, according to an emailed statement. Abu Dhabi Commercial Bank PJSC has made an early commitment to the facilities and is a mandated lead arranger and bookrunner, the statement said.
The financing consists of a conventional term loan and Islamic facilities, the statement said, without elaborating on how those tranches would be divided. The purpose of the deal was to "optimize DDF's capital structure in order to support the further development at Dubai International Airport," the company said.
The syndication was launched on April 5, when banks were invited to make commitments in dollars, U.A.E. dirhams or both. DDF is planning a management presentation on the deal this week, the statement said.
DDF currently has about 18,000 square meters of retail space and 4,000 staff. It processes an average of 61,400 transactions per day.
Revenues at the company, the exclusive operator of retail duty-free shops at airports in Dubai, reached $1.45 billion last year. DDF claims to be the biggest airport retailer in the world, accounting for 5% of airport shop sales.
DDF is fully owned by the Investment Corporation of Dubai, the Dubai government's main investment arm.
-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
09-04-12 1019GMT
DUBAI (Zawya Dow Jones)--Dubai Duty Free, the state-owned company that operates tax-free shops at the Dubai International Airport, plans to borrow $1.1 billion from banks to fund its further expansion at the global air transport hub.
Dubai Duty Free has mandated Citibank, Dubai Islamic Bank PJSC, Emirates NBD Capital Ltd. and HSBC Bank Middle East Ltd. to arrange and coordinate the company's first international financing transaction, according to an emailed statement. Abu Dhabi Commercial Bank PJSC has made an early commitment to the facilities and is a mandated lead arranger and bookrunner, the statement said.
The financing consists of a conventional term loan and Islamic facilities, the statement said, without elaborating on how those tranches would be divided. The purpose of the deal was to "optimize DDF's capital structure in order to support the further development at Dubai International Airport," the company said.
The syndication was launched on April 5, when banks were invited to make commitments in dollars, U.A.E. dirhams or both. DDF is planning a management presentation on the deal this week, the statement said.
DDF currently has about 18,000 square meters of retail space and 4,000 staff. It processes an average of 61,400 transactions per day.
Revenues at the company, the exclusive operator of retail duty-free shops at airports in Dubai, reached $1.45 billion last year. DDF claims to be the biggest airport retailer in the world, accounting for 5% of airport shop sales.
DDF is fully owned by the Investment Corporation of Dubai, the Dubai government's main investment arm.
-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
09-04-12 1019GMT
