Dubai completes funding for Dubai Metro’s Route 2020 extension project

The Roads and Transport Authority said that tunneling on the Route 2020 Project is progressing at a steady pace with more than 50 percent of the excavation work already completed. (Roads and Transport Authority)
Updated 22 March 2018
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Dubai completes funding for Dubai Metro’s Route 2020 extension project

DUBAI: The government has completed the 9 billion-dirham financing exercise to complete the construction of the Dubai Metro’s Route 2020 extension project, the emirate’s Department of Finance said on Thursday.
The transaction consists of a 17-year billion dirham loan guaranteed by the French export credit agency Bpifrance Assurance Export and the Spanish export credit agency Compañía Española de Seguros de Crédito a la Exportación, with 14-year amortizations to start in 2020, and a 10-year conventional facility of 4 billion dirhams, with payments over six years to start in 2022.
The five-stage Route 2020 project, which will cost 10.6 billion dirhams, will extend the existing Dubai Metro Red Line to the Expo 2020 site and will have seven stations in between.
“The encouraging response received for this financing, illustrates the strong confidence of international banks in Dubai’s economy … we have been able to achieve long-term financing at competitive rates while at the same time allowing us to manage our budget proactively and in a fiscally responsible manner,” Abdulrahman Saleh Al Saleh, DoF director general, said in a statement.
Banco Santander, First Abu Dhabi Bank, HSBC Middle East Limited, Intesa Sanpaolo and Standard Chartered Bank acted as mandated lead arrangers and the facility providers for the financing.
The contract for the design and build for the project was awarded by Dubai’s Road and Transport Authority to a consortium of Alstom Transport, Acciona Infraestructuras and Gulermak.


Potential SABIC deal would affect Saudi Aramco IPO time frame, says CEO Nasser

Updated 20 July 2018
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Potential SABIC deal would affect Saudi Aramco IPO time frame, says CEO Nasser

JEDDAH: A potential deal to buy a stake in petrochemical maker SABIC would affect the time frame of Saudi Aramco's initial public offering (IPO), the oil firm's president and CEO Amin H. Nasser said Friday. 

The IPO of around 5 percent of Aramco, which was initially to take place this year but is now more likely to happen later, would be the world's biggest listing, raising up to $100 billion.

Nasser said that buying a stake in a chemical company like SABIC would positively affect Aramco's revenue, Al Arabiya reported.

“We are still in the very early stages of the discussion to buy a stake in SABIC,” the Aramco CEO said.

“Aramco is ready for the initial offer and the timing remains subject to the state's decision.”

Saudi Aramco said on Thursday it is looking at the possibility of buying a stake in SABIC, a move that could boost the state oil giant’s market valuation ahead of the planned IPO.
Aramco said in a statement that it was in “very early-stage discussions” with the Kingdom’s Public Investment Fund (PIF) to acquire the stake in SABIC via a private transaction. It has no plans to acquire any publicly held shares, it said.
In a separate statement, PIF also said talks about a sale were in early stages. “There is a possibility that no agreement will be reached in relation to this potential transaction,” it said.