Dubai govt says picks HSBC to arrange $3bln airport financing

The funds will come from a variety of sources and will include conventional and Islamic tranches.

  
Traffic control tower is seen near the Emirates Terminal at Dubai International Airport

Traffic control tower is seen near the Emirates Terminal at Dubai International Airport

Reuters/ Jumana El-Heloueh
DUBAI, Nov 1 (Reuters) - The government of Dubai has chosen HSBC to arrange initial funding of $3 billion towards the expansion of Al Maktoum International Airport, according to a statement on UAE state news agency WAM.

The financing will be raised by a consortium of Dubai state entities, comprising of the Department of Finance, state-owned fund Investment Corporation of Dubai, and the Dubai Aviation City Corporation.

The funds will come from a variety of sources and will include conventional and Islamic tranches, the statement added.

Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum in September 2014 approved a $32 billion investment to expand the emirate's second airport, with an aim to handle up to 120 million passengers a year by 2022.

(Reporting by Hadeel Al Sayegh; Editing by David French) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))