The Meydan Group has raised Dh1 billion in debt funding, which the company has said will help to improve its capital structure and provide cash for new projects.
The company, which owns and operates Dubai’s main racecourse and an adjoining hotel, raised the money through a Dh700 million sukuk and a Dh300m term loan, both of which will mature in 2024.
The funding was structured and coordinated by Abu Dhabi Investment Bank (ADIB), but a number of other local banks took part in the sukuk, including Al Hilal Bank, Sharjah Islamic Bank and Ajman Bank.
In a statement, Meydan said the funds had been raised “at a pivotal time” in its commercial development, as it plans a series of new residential, logistics and facilities projects.
Saeed Humaid Al Tayer, the chairman and chief executive of Meydan Group, said: “This facility assists in realising our funding objectives to build strategic partnerships with local and regional financial institutions to continue our growth and enable us to fulfil our business strategy of linking the world with the emirate of Dubai.”
Tirad Al Mahmoud, the chief executive of ADIB, said the deal “evidences the results we are achieving by stepping up our corporate financing activity, with a particular focus on growing companies and real estate”.
“We expect the structure of this deal will serve as a model for future mandates,” he said.
In August 2015, Meydan unveiled proposals for Meydan One, a new master-planned community spread over 5 million square metres featuring a 711 metre-high residential tower, a major civic plaza, a 100-berth marina, a new mall and the world’s longest indoor ski slope.
At the time of the announcement, the company said the first phase of development, including the tower, mall, civic plaza and the world’s longest dancing fountains, would be completed by 2020.
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