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Thu 3 Nov 2016 11:37 AM

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Bank proposals sought on $3bn financing for Dubai’s Al Maktoum Airport expansion

Al Maktoum will eventually become Dubai's primary international airport, taking over from Dubai International

Bank proposals sought on $3bn financing for Dubai’s Al Maktoum Airport expansion

The government of Dubai has sent a request for proposals to banks for the financing of the expansion of Al Maktoum International Airport, and expects to receive banks' feedback over coming weeks, the Dubai Department of Finance told Reuters.

The size, tenor and expected timeline of the financing - which according to a previous official statement is expected to be in the $3 billion region - have not yet been established, the department said in an emailed statement on Thursday.

The government has chosen HSBC to arrange the funding, it said earlier this week. The borrowing entity for the airport financing will be a consortium comprising the Department of Finance, Investment Corp of Dubai and Dubai Aviation City Corp.

The financing will include an Islamic component and is expected to attract both commercial banks and the backing of export credit agencies, banking sources said.

Al Maktoum will eventually become Dubai's primary international airport, a role that is currently served by Dubai International.

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