Dubai Duty Free is raising a $1.1 billion loan backed by the airport retailer’s future cash earnings and hired lenders including Citigroup Inc. (C) (C) to help with the plan, two bankers familiar with the deal said.
Dubai Duty Free’s parent, Investment Corp. of Dubai, the emirate’s main state-owned holding company, also mandated HSBC Holdings Plc. (HSBA), Dubai Islamic Bank PJSC (DIB) and Emirates NBD PJSC (EMIRATES) to help with the fundraising, the people said, declining to be identified because the information is private. The five-year financing plan pays a margin of 3.5 percentage points over the London interbank offered rate, they said. A spokeswoman for Dubai Duty Free, who didn’t wish to be identified because of company policy, declined to comment.
Dubai Duty Free, which began operations in 1983, operates 18,000 square meters of retail space at Dubai International and is the world’s single-largest airport retailer based on 2010 revenue. It reported a 15.6 percent rise in 2011 revenue to $1.46 billion.
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