Abu Dhabi:  Mubadala Development Company said yesterday it has achieved financial closure on a new $2.5 billion three-year corporate multi-currency revolving credit facility with 21 international financial institutions.

Having received more than $4 billion (Dh14.7 billion) in commitments, each lender was allocated approximately $119 million, the firm said.

Split into two tranches, the first tranche of $2 billion will be used for general corporate purposes, while the second tranche of $500 million will be earmarked to backstop refinancing of any issuances under Mubadala's recently-established Euro Commercial Paper programme.

Competitive

The margin on the facility is 75 basis points.

Project and Corporate Finance Executive Director Derek Rozycki said: "We are pleased with the competitive pricing on our revolving credit facility, which reconfirms Mubadala's ability to access the capital markets at the most competitive levels on par with our European peers."

Mubadala is in advanced talks over the sale of plots in its Sowwah island development in Abu Dhabi, which will be the home of the capital's new central business district, a senior company executive said.

The Abu Dhabi government investment firm is "in active negotiation" on seven out of eight land plots still up for sale to investors, executive director for real estate and hospitality John Thomas said.

Thomas said Mubadala is also moving into the final phase of masterplanning on the Sowwah development, a 105-hectare island and investment zone that will be home to the new central business district and include a new building for the Abu Dhabi stock exchange.

"We're very pleased with the way the market has responded to Sowwah," Thomas said. Abu Dhabi government-owned Al Hilal Bank and National Bank of Abu Dhabi last year each bought one plot of land on Sowwah, out of a total 10.

— With inputs from agencies

STADIUM PLAN

BIDS CLOSE END OF MAY

Mubadala expects to receive bids by the end of May for the development of the 65,000-seat Shaikh Khalifa Bin Zayed Stadium in Abu Dhabi, which it manages on behalf of the government, executive director John Thomas said.

"We're doing that project as development manager on behalf of the Abu Dhabi Sports Council," he said. "They have a strategy for that part of the capital district — they're calling it a sports hub — and the stadium is a key element of that strategy." The project has a contract value of $1 billion (Dh3.67 billion). Mubadala is also building its own miniature entertainment venue, a 3,000-seat performance theatre in its Mina Zayed development. The smaller venue replaces original plans for a 17,000-seat sports and entertainment arena, Thomas said.

— Zawya Dow Jones