DIB wins DCA mandate

25 June 2004
Dubai Islamic Bank (DIB)has been mandated to lead arrange a $750 million sukuk issue for Dubai's Department of Civil Aviation (DCA). The funds will be used to finance the $4,200 million expansion under way at Dubai International Airport.

The issue will be the biggest in the Gulf of the increasingly popular Islamic leasing instrument, breaking the previous $700 million record set by the Qatari sovereign issue in 2003. Roadshows will take place in the final week of September in Bahrain, Dubai and Malaysia. Subscription will open in early October. The sukuk will be listed on the Dubai Financial Market. Marketing will primarily target the GCC but interest is also anticipated from further afield.

The mandate is the largest single deal for DIB and the bank will seek to bring on board a regional or international heavyweight at the co-lead-arranging stage.

DCA announced in April that it was planning to create a separate entity responsible for the international airport in order to seek private funding for the expansion project, but the body has not yet been formed.

Bids are due by mid-August for the biggest package on the estimated $4,200 million expansion, covering the finishes and mechanical, electrical and plumbing (MEP) works for terminal 3, concourse 2 and the car parking structure (see Construction; MEED 28:5:05).

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