Commercial Bank of Dubai (CBD) has started negotiations with banks on the pricing of a three-year $400m loan refinancing.

The deal is not expected to reach financial close until late summer, but some bankers are already saying pricing could be around 225 basis points above the London interbank offered rate (Libor).

Germany’s Commerzbank is coordinating the nine-bank deal, which includes the UK’s Standard Chartered, Lloyds TSB, France’s BNP Paribas and Bank of New York Mellon.

CBD started talks with the banking group in February ahead of the loan maturing in September.