Dubai has managed to lower the margins on the $800m loan it is raising secured by receipts from the emirate’s Salik toll road by 25 basis points as a result of the strong response to the deal.
The deal, which is being arranged by the US’ Citigroup, will now be priced at 325 basis points over the London interbank offered rate (Libor). Bankers say the drop in pricing was the result of the oversubscription to the transaction (MEED 3:06:11).
The loan will be secured against cashflows from the Salik road toll system operated by the Roads & Transport Authority. The transaction is expected to close by the end of June.