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Tue 22 Mar 2011 04:54 PM

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Meydan Group agrees $120m loan with India’s IDBI Bank

Capital will fund Emirates housing project, deal is first of several to be announced this year, says CEO

Meydan Group agrees $120m loan with India’s IDBI Bank
Meydan Group is the Dubai developer behind the worlds largest horse-racing complex

Meydan Group,
the Dubai developer behind the world’s biggest horse-racing complex, will
receive a $120m syndicated loan from India’s IDBI bank for its Meydan Heights
project.

The
state-controlled developer will use the capital to fund a 528-unit housing
project for Emirates Airline staff, the company said at a media briefing
Tuesday.

The Arab
world’s largest airline said Monday it had purchased a plot of land for an
undisclosed sum in the Meydan City development, on a 15-year
lease-to-own basis.

The loan
marks state-controlled IDBI’s first project financing deal in the Middle East
and may pave the way for future agreements, said N S Venkatesh, CEO of the bank’s
Dubai branch.

“Both
Meydan Group and Emirates Airline are companies with international repute and
IDBI is a long term project financier. We’ll have to look at the cash flows of
the project coming in, but it’ll definitely be a longer tenure and we know this
project will be a showpiece, a success,” he said.

Meydan
Group CEO Saeed Al Tayer said the Emirates deal is the first of several to be
announced this year.

“We’ve just
announced the biggest construction deal for the last two years. That took a lot
of effort from all team members,” he told Arabian Business.

“We aren’t
going to stop with this deal. We have a few projects, they might not be of the
same magnitude of Emirates, but are just as important, with international
names. We’ll announce them during this year, definitely this year.”

Meydan City
spans four districts; Meydan Metropolis business park, the racecourse and
grandstand, Meydan Goldolphin parks, featuring a tower create in the image of a
thoroughbred horse, and Meydan Horizons, which combines business towers and
waterfront real estate.

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