TECOM Investments, a business park operator with a major role in developing Dubai's economy, said on Tuesday that it had signed for a syndicated loan facility of up to 4 billion dirhams ($1.1 billion) to fund its growth. The combined conventional and Islamic facility is for 3.53 billion dirhams with an option to raise it to 4 billion dirhams. The syndication is set to be launched soon and be completed by the end of March, TECOM said in a statement emailed to Reuters.
Lead arrangers and bookrunners are Abu Dhabi Commercial Bank , Citibank, Dubai Islamic Bank, Mashreq bank and Noor Bank. Commercial Bank of Dubai joined as an early lead arranger before formal syndication. TECOM did not specify the terms of the loan. Bankers told Reuters late last year that it might have a lifespan of between seven and eight years. The loan "will help to fund the company's general corporate needs, new developments and growth plans, as well as other strategic objectives in line with its innovation strategy," said TECOM, a unit of Dubai Holding, the investment vehicle of the emirate's ruler.
TECOM's business parks house more than 4,500 companies in sectors including media, information technology, education and scientific research. Last November TECOM said it planned to invest 4.5 billion dirhams in new projects including a district for the emirate's burgeoning design industry and a fund for start-up businesses.