DUBAI: Airport retailer Dubai Duty Free (DDF) is repricing a $1.75bn syndicated loan for the second time in just over a year to obtain more favourable terms, a fresh sign of banks’ willingness to lend cheaply to the emirate.
The six-year loan, originally signed in July 2012, was split between dirham- and US dollar-denominated tranches, both priced at 325 basis points over the London interbank offered rate (Libor).
Last year the state-controlled retailer negotiated the pricing of the dirham-denominated tranche to 225bps and the dollar tranche to 250bps. Yesterday, the DDF said it was repricing the dirham tranche further to 150bps and the dollar tranche to 175bps.
Another $750m, dollar-denominated loan, taken last September to fund the company’s expansion at Dubai International Airport, is also being repriced to 175bps, the company added.
Reuters
