Dubai's TECOM Group talks to banks about $272m loan

Sources say business park operator is looking for funding to finance building projects in Dubai
Dubai's TECOM Group talks to banks about $272m loan
By Reuters
Sat 27 Feb 2016 12:58 AM

TECOM Group, a business park operator with a major role in developing Dubai's economy, is in the market for a syndicated loan of up to 1 billion dirhams ($272 million), banking sources have said.

The company, a unit of sovereign investment vehicle Dubai Holding, was looking for funding with a 10 year lifespan to finance building projects in its business parks, two of the sources said.

One of the sources said the company hadn't decided on the structure of any deal yet or how many buildings it wanted to finance.

TECOM was not immediately available to comment.

Dubai's real estate market has softened in the past year as investment appetite has waned against a backdrop of reduced liquidity caused by low oil prices.

According to its website, TECOM operates 10 business communities, where around 4,650 businesses employ a total workforce of 74,000.

TECOM closed a general syndication of a loan of up to 4 billion dirhams in March last year, according to IFR, a Thomson Reuters unit.

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