DUBAI, Feb 22 (Reuters) - Dubai's department of
finance raised $675 million from a dual-currency loan to
complete the first phase of its Al-Sufouh tram project in the
emirate.
The facility comprises a 13-year $401 million loan which
will amortize over 10 years starting 2015, the media office of
Dubai government said in an email statement on Wednesday.
The loan is guaranteed by the official government export
credit agencies of Belgium (ONDD) and France (COFACE).
The second portion of the loan is a six-year $274 million
Islamic Ijara facility amortizing over three years starting
2015. The facility is split equally in dollars and dirhams.
Citigroup, Deutsche Bank, and HSBC
were mandated as lead arrangers and underwriters for the
financing, the statement said.
The first phase of the Al-Soufouh Tram project will see the
construction of a 10km-long track starting from Dubai Marina and
running all the way to the Knowledge Village.
Liquidity woes had delayed the progress of the project as
Dubai's Roads and transport Authority (RTA) struggled to meet
payment in the wake of the global slowdown. The tram was
initially scheduled for completion in 2011.
Dubai also closed a $800 million financing deal with lenders
based on securitising road toll receipts in July last year. The
dual currency, six-year financing was expected to support RTA's
infrastructure projects.
(Reporting by Praveen Menon; Editing by Dinesh Nair)
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