Abu Dhabi National Hotels will complete a AED1.5bn ($408m) dirham-denominated fundraising deal before the end of November, according to bankers close to the company.

National Bank of Abu Dhabi is acting as lead arranger on the deal and will also be a lender, along with the UK’s Standard Chartered, local Union National Bank and Abu Dhabi Commercial Bank.

The tenor of the debt will be seven-and-a-half years. Pricing is still being discussed, but the lenders are now being offered about 350 basis point above the Emirates interbank offered rate (Eibor).

“Negotiations on pricing are ongoing as liquidity in the UAE banking sector is still under strain,” says a UAE-based banker working on the deal. If the debt is priced at this level it will be about 50 basis points below the initial pricing indications.

Abu Dhabi National Hotels had hoped to finalise the deal in October, but it was held up by the slowdown in activity during the summer and Ramadan.

The deal will be structured as a corporate hybrid facility, a type of bond that has a lower repayment priority than other types of debt (MEED 11:9:09).

The hotel company is now working on the AED700m development of the Park Hyatt hotel on Saadiyat Island in Abu Dhabi.