Dubai: Dubai Parks and Resorts, a unit of government-owned Meraas Holding, said on Tuesday it has received $1.15 billion (Dh5.5 billion) of syndicated finance facilities, a day after it launched its Initial Public Offering (IPO).
“This is a pivotal transaction for Dubai Parks and Resorts. This financing allows us to deliver on our ambition to create the world’s next great leisure destination and reflects the strength of our strategy, our vision and the quality of our people,” said Raed Al Nuaimi, CEO of Dubai Parks and Resorts.
This transaction will further support the Dubai Tourism Vision 2020 that seeks to double Dubai’s annual visitor numbers from 10 million in 2012 to 20 million by 2020 and increase the economic contribution of the tourism sector to the UAE’s GDP.
“They want to start spending on their projects. It is a sign of confidence in viability of their projects,” said an analyst who wished not to be named.
Goldman Sachs structured and led the $1.15 billion financing which is fully underwritten by Goldman Sachs, Abu Dhabi Commercial Bank, Ahli United Bank., Commercial Bank International, Emirates NBD Bank and Noor Bank.
Meanwhile, Dubai Parks and Resorts opened its Dh2.5 billion Initial Public Offering for investors on Monday, providing an opportunity for investors to tap fast expanding leisure sector in the country.
Dubai Parks and Resorts plans to offer 2.5 billion shares or 40 per cent of the issued share capital at Dh1 each, bringing the total market capitalisation to Dh6.3 billion. The IPO subscription period will run through November 30.