Dubai Investments Park Development Company (“DIPDC”), a subsidiary of Dubai Investments PJSC, is planning to raise AED 250 million by way of a syndicated loan facility. The company has appointed Emirates Bank Group and Standard Chartered Bank (SCB) as the Mandated Lead Arrangers (MLAs) for the transaction. Emirates Financial Services (EFS) [the investment banking subsidiary of Emirates Bank International PJSC along with SCB would act as Joint Book Runners (JBRs) for the transaction.
DIPDC is a wholly owned subsidiary of Dubai Investments PJSC (a company listed on DFM) and is the developer and operator of Dubai Investments Park which is an industrial cum residential park situated in Dubai. The Park provides infrastructure facilities to industries that want to set up their facilities without investing in auxiliary facilities. The Park is witnessing a strong demand for land in the Park. DIPDC is raising the loan to fund its expansion plan to cater to the increasing demand.
Mr. Khalid Kalban, Managing Director of DIPDC, said “The growth being witnessed by DIPDC is a clear reflection of the success of the economic diversification plan of the Government of Dubai. We intend to expand our facilities to attract more manufacturing units to Dubai. The funds are being raised to accelerate our growth so that we are able to fulfill the mandate for which the Park was established, in a much shorter time than was originally envisaged.”
Mr. Suresh Kumar, CEO of EFS, said “We are privileged to be associated with DIPDC in their maiden foray into the syndicated credit market. Our pre marketing calls indicate a very strong response from lenders for such business models as DIPDC as they are backed by stable cash flows and growing rapidly at the same time.”
Mr. Ray Ferguson, CEO , SCB said “This transaction is an extension of our relationship with Dubai Investments which has been playing a crucial role in developing the industrial sector in Dubai as well as the region. We expect a strong demand for this loan from local banks that are looking to lend to reputable businesses”
The transaction is expected to be launched over the next few weeks.
