LONDON: Dubai’s iconic island resort, Atlantis, The Palm, owned by Investment Corporation of Dubai (ICD) is looking to reprice or refinance an $880m syndicated loan signed in September 2013, banking sources said.
The five-year loan was provided by seven local and international banks comprising Barclays, HSBC, Abu Dhabi Commercial Bank, National Bank of Abu Dhabi, Commercial Bank of Dubai, Union National Bank and Emirates NBD and was priced at 500 basis points over Libor.
Airport retailer Dubai Duty Free is also in the process of 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.
However, despite a more bullish market in the UAE it is unclear whether Atlantis would be able to reprice its loan as easily as DDF.
“Dubai Duty Free will be a clear mark to market repricing, it is a strong, well performing company but it is not as clear cut for Atlantis,” one banker said.
Atlantis The Palm was one of a handful of loans last year that highlighted a fragile recovery in the UAE after the financial crisis. Dubai’s luxury hotel chain Jumeirah also closed a six-year $1.4bn loan in October 2013.
Bankers are predicting a fall in loan pricing in the region as liquid local banks and international banks desperate to deploy capital create an attractive environment for borrowers.
Reuters
