The UAE’s Mashreqbank and Noor Islamic Bank, along with the UK’s Standard Chartered and Royal Bank of Scotland, have been appointed to arrange the facility, which will be used to replace a $600m loan arranged by France’s Calyon in 2007, which matured in August.

Bankers close to the deal say that prices could be around 500 basis points above the London interbank offered rate (Libor), a high price that reflects the continued reluctance of banks to make fresh loans to Dubai.

A bridge loan was put in place in August to provide temporary funding for the company until the new syndication could be arranged.

DIC is the international investment arm of Dubai Holding.

The Dubai Civil Aviation Authority is also in talks with banks about refinancing a $1bn sukuk which matures in November (MEED 16:10:09).