Al Ghurair Group seals loan facility

AL GHURAIR GROUP: Syndicated loan facility agreed. Al Ghurair City to be expanded. (Getty Images)

Al Ghurair Group has sealed a $347 million syndicated loan facility to finance a further expansion of Dubai's Al Ghurair City.

The deal, agreed with Badr Al-Islami, the Islamic banking division of Mashreq and Standard Chartered Saadiq, along with Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, First Gulf Bank, Ajman Bank and Arab African International Bank, runs for 10 years.

Although the cost of the loan was not immediately available, a previous report in Emirates Business claimed it will be at 300 basis points above the London interbank offered rate.

Mashreq and Standard Chartered Bank were the bookrunners on the deal.

Proceeds from the facility will be used to finance the expansion of Al Ghurair City, the well known mixed use (retail, commercial and residential) complex located in Dubai.

Ahmed El Sayed, Chief Financial Officer of Al Ghurair Investment said: "the strength of our group enables it to proceed with its set objectives; the expansion of Al Ghurair City is an implementation of such a strategy. We are confident that as pioneers of mixed used developments, we will continue to enhance our offerings."

Steve Perry, Regional Head of Syndications, MENA, Standard Chartered added: "The successful closure of this transaction is a clear demonstration that there is still credit appetite available for well-established and robust businesses operating with the UAE."

Built by the Al Ghurair family in 1978, Al Ghurair City was the first retail venue of its kind in the UAE comprising of retail shops, apartments and offices.

With the new Dubai Ultra Light Rail on the way, the expanded Al Ghurair City will be easily accessible to all everyone.

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