Borse Dubai loan closes fully subscribed

BORSE DUBAI: Loan closes fully subscribed with $2.5 billion raised in syndication. (Getty Images)

Bankers close to the deal have confirmed that State-run Borse Dubai's one-year loan has closed fully subscribed after raising $2.5 billion in syndication.

The facility, together with a $1 billion equity injection from Borse Dubai's shareholders, will refinance the company's $3.78 billion loan which matures on Feb. 28. Support from state-owned Dubai banks helped the loan to meet its target, a senior banker said.

Part of the original deal was raised in sterling, which means the amount outstanding has fallen to $3.4 billion due to exchange rate changes, one of the sources said.

HSBC coordinated Borse Dubai's loan, which includes a one-year extension option. The margin is 325 basis points (bps) over LIBOR, with an additional fee of 75 bps if the borrower opts to extend.

The original financing, which was used to back the borrower's acquisition of Nordic exchanges group OMX, was split between a $2.226 billion facility and a 796 million pound facility.

It paid a margin of 70-130 bps over LIBOR. (Reuters)

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