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FINANCIAL NEWS
Dubai predicts to raise USD500mn to fund metro expansion
30 May 2017
(MENAFN) The government of Dubai is projected to raise the money requested to extend the city”s metro with a basic loan of almost USD500mn that will be followed by loans guaranteed by export credit agencies.
Furthermore, the department of finance will approach banks in the coming weeks needing a loan with a maturity of five years.
Meanwhile, when the government contacted banks on the financing of the metro extension in 2016, it asked for USD2.8bn of funding, which would have involved ECA-backed loans.
Additionally, the five year loan which the government is now projected to offer will have an interest margin of more than 200 bps over Libor.
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