Deutsche set for DIFC

04 October 2002

Deutsche Bankis expected to be formally awarded in mid-October a financial advisory mandate by the Dubai International Financial Centre (DIFC). The mandate will cover the medium-term financing needs of the real estate project that lies at the heart of the DIFC initiative. The request for proposals issued by the DIFC suggested the total financing requirement could run to $500 million-700 million (MEED 16:8:02).

There is also likely to be a short-term financing requirement of about AED 200 million ($55 million), which will be used to cover the cost of the first DIFC building and some of the associated infrastructure. No final decision has yet been taken on how this will be structured, but the possibility remains that it could be a non-recourse facility backed by rental income. If so, bankers will look closely at the contractual commitments of potential tenants, whose identities are yet to be revealed.

Originally, the DIFC had gone to banks for a lead arranger, but the nature of the responses they received persuaded them to alter their approach and seek a financial adviser. The other banks understood to be looking at the deal include Barclays Capital, Citibank, HSBC Investment Bankand Standard Chartered.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.