A unit of Dubai Holding, the investment vehicle of the emirate’s ruler, yesterday said it was in talks with lenders to raise a syndicated loan, with banking sources adding the facility could be worth up to four billion dirhams ($1.1bn).
TECOM Investments, a business park operator and one of the key assets of Dubai Holding, is expected to use the proceeds for its growth plans, while some of the cash would also be diverted to the parent company, one of the sources said.
TECOM is close to finalising the group of banks that will arrange the loan and it intends to complete the deal this year, the sources said.
TECOM operates 11 business parks in the emirate including the Dubai Media City and Dubai Internet City.
It has also announced plans to build a new development with 440 luxury villas and the Dubai Design District that would house global fashion brands.