Dubai: The Meydan Group has secured a Dh1 billion financing from a consortium of local banks led by Abu Dhabi Islamic Bank (ADIB) that will be used for a series of new and ongoing developments it has embarked on. The funding contains a Dh700 million Sukuk issue and a Dh300 million term facility, both of which mature in 2024.
“This facility assists in realizing our funding objectives to build strategic partnerships with local and regional financial institutions to continue our growth and enable us to fulfil our business strategy of linking the world with the emirate of Dubai,” said Saeed Humaid Al Tayer, Chairman and CEO of the Meydan Group, in a statement.
Meydan has got multiple projects in various stages of development, including the signature mixed-use Meydan One master-development, which is to feature a super-regional shopping mall and a signature tower that aims to be the tallest residential high-rise in the world. The destination will also feature attractions such as the largest indoor ski slope ever.
Meydan is also a joint venture partner overseeing the Dubai Canal extension.
ADIB acted as the sole coordinator and structuring bank for the financing, as well as being a joint lead manager and bookrunner for the sukuk issue along with Al Hilal Bank. They were joined by Sharjah Islamic Bank and Ajman Bank.
The deal was structured to meet Meydan’s financing objectives, which include “enhancing capital structure, diversifying investor base and earning additional funding for new projects”, the statement added.
According to Tirad Al Mahmoud, CEO of ADIB, “This deal breaks new ground in a number of ways. It demonstrates our ability to bring together diverse elements to create a novel and highly effective solution for our client.
“It also evidences the results we are achieving by stepping up our corporate financing activity, with a particular focus on growing companies and real estate. We expect the structure of this deal will serve as a model for future mandates and helps to show that we are always assessing how we may help to push the boundaries of Sharia-compliant financial solutions globally.”