Abu Dhabi’s Mubadala Development Company is still struggling with banks over the financing for its $1bn Zayed University.
Mubadala hopes to complete t financing on November 26, according to bankers close to the deal. Several banks involved in the deal say they still have concerns about certain aspects of the financing.
Mubadala had been hoping to complete the financing by July, after initially seeking funding for the deal in April.
The funding of the project is split between a $900m debt tranche with a tenor of 10 years and pricing starting at 290 basis points above the London interbank offered rate (Libor) (MEED 6:7:09).
The banking group in talks to fund the project includes Abu Dhabi’s First Gulf Bank, Abu Dhabi Commercial Bank, National Bank of Abu Dhabi, France’s Calyon, Societe Generale and Natixis, the UK’s Royal Bank of Scotland, and Bank of Tokyo Mitsubishi.
The Zayed University campus will cover 800,000 square metres and will accommodate 6,000 students. It is the second university PPP transaction in Abu Dhabi, following the $385m financing for Paris-Sorbonne University in December 2008.