Dubai Duty Free (DDF) has mandated the local Abu Dhabi Commercial Bank, Emirates NBD, and the UK’s Standard Chartered to arrange a new $750m loan.

The deal will be priced at 225 basis points above the London interbank offered rate (Libor). Earlier this year, the bank reduced the margin on a $1.75bn loan to 250 basis points above Libor from 350 basis points.

DDF said the proceeds of the deal would be used to finance the development of Dubai International airport and to help lower its borrowing costs.

Improving sentiment towards Dubai since the emirate went through a recession and multibillion-dollar debt restructuring in 2009 has helped a raft of borrowers refinance their debts at lower margins.