Dubai: Government secures $3b financing for airports expansion

The Dubai government said Sunday that it had secured $3b in long-term financing for the expansion of its airports. The expansion is one of three multi-billion dollar infrastructure projects that the emirate is planning to fund through debt, together with the building of Dubai's World Expo 2020 exhibition site and an extension of Dubai's Metro system. The funding will be used for the expansion and development of Dubai International Airport and Al Maktoum International Airport, the emirate's new airport being developed on the edge of Dubai, it said. The facility signifies the first stage of a larger funding plan which will transform Al Maktoum International into the primary airport for Dubai, serving up to 146m passengers by 2025, it said. The deal, for which HSBC acted as financial adviser, included a $1.63b, seven-year conventional loan and a $1.48b-equivalent, seven-year ijara facility denominated in dirhams. Ijara is a common lease-based structure used in Islamic finance. <br/>