Investment Corporation of Dubai, one of the emirate’s main state-owned holding companies, is raising a $2.8bn loan to help repay a $4bn facility that matures in September, two bankers familiar with the plan said.
Citigroup, HSBC Holdings and Emirates NBD are coordinating the conventional tranche, while Standard Chartered and Mashreqbank are leading the Islamic portion, the bankers said, declining to be identified because the information is private. Investment Corporation of Dubai will repay the remaining $1.2bn from its cash balances, the bankers said.
Spokesmen for Investment Corporation of Dubai, Standard Chartered, Emirates NBD and Mashreqbank could not immediately comment.
Spokesmen for Citigroup and HSBC in Dubai declined to comment. Reuters reported the story on May 5.
The syndication began last week and the loan will pay interest of 350 basis points over the London interbank offered rate, plus a 100 basis points participating fee and 100 basis points structuring fee for the mandated lead arrangers, the bankers said. The original loan paid 125 basis points, one of the bankers said. A basis point is one hundredth of a percent.
Investment Corp. raised the term loan in 2008 as part of a $6bn facility, with the remaining $2bn maturing in 2013, the bankers said. Standard Chartered, Citigroup, Credit Agricole CIB, Barclays Capital, HSBC, JPMorgan Chase & Co, Royal Bank of Scotland Group, Dubai Bank, Dubai Islamic Bank and Noor Islamic Bank arranged the existing credit, according to data compiled by Bloomberg.
Investment Corp., set up in May 2006, has stakes in more than 30 companies including Emirates airline, DP World Ltd, the world’s fourth-biggest port operator, and Emirates NBD, the Arabian Gulf’s biggest bank by assets.
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