Abu Dhabi National Hotels has raised a AED1.5bn ($408m) loan from a group of four banks.

The deal was launched in September 2009.

The final deal was split between National Bank of Abu Dhabi (NBAD), which acted as arranger on the deal, and the local Union National Bank and Abu Dhabi Commercial Bank. The UK’s Standard Chartered was also involved in the financing.

The loan will last for seven and a half years, and pricing is about 350 basis points above the Emirates interbank offered rate (Eibor), according to one banker involved in the deal.

Abu Dhabi National Hotels had hoped to finalise the deal before the end of the 2009, but the deal was held up by the lull in activity as a result of the summer and Ramadan holidays, and negotiations about pricing levels.

The deal was structured as a corporate hybrid facility, a type of bond that has a lower repayment priority than other types of debt (MEED 04:11:09).

The hotel company is listed on the Abu Dhabi Securities Exchange (ADX).