Dubai Duty Free (DDF) announced that it has successfully concluded its debut international financing - a $ 1.75 billion, 6 year senior unsecured syndicated credit facility (the ‘Financing’ or the ‘Transaction’), comprising a conventional term loan facility and Islamic facilities.

The Financing will fund the on-going expansion of Dubai International Airport (DIA).

The Financing, which is the largest syndicated facility for a debut Dubai Government related entity since 2008, closed significantly oversubscribed, with strong support from a syndicate of 26 international, regional and local banks.

Demonstrating demand for credits with strong fundamentals and appropriate financing structures, the transaction garnered a significant oversubscription, which allowed DDF to exercise its right to upsize the facility from the initial launch amount of $ 1.1 billion and to successfully reduce the margin by 25 basis points.

Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Citi, Dubai Islamic Bank, Emirates NBD and HSBC acted as Bookrunners and Mandated Lead Arrangers.

Commenting on the Facilities, Colm McLoughlin, Executive Vice Chairman said:

“We are extremely pleased with the very positive response that the transaction has elicited from the market and which enabled both an upsizing in the size of the financing and a tightening of the margin. The successful close of this transaction clearly highlights the confidence that the bank community has in DDF and just as importantly demonstrates that sentiment around and towards Dubai is continuously improving. All in all, this is a highly successful debut financing which sets a benchmark for DDF’s future funding strategy and allows us to focus firmly on implementing our development plans for the benefit of all stakeholders.”

Mandated Lead Arrangers on the transaction were: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Citi, Dubai Islamic Bank, Emirates NBD, HSBC, Gulf International Bank, Al Hilal Bank, MashreqBank, Qatar National Bank and Commercial Bank International.

Lead Arrangers on the transaction were Commercial Bank of Dubai, National Bank of Abu Dhabi, Samba Financial Group and Union National Bank.

Arrangers on the transaction were Gulf Bank, BAWAG, Arab Bank, First Gulf Bank, Noor Islamic Bank, and Sharjah Islamic Bank. Junior Arrangers on the transaction were Ajman Bank, Ahli United Bank, Bank of Bahrain and Kuwait, National Bank of Kuwait and United Arab Bank.

DDF is a Decree company established in December 1983 as the sole duty free operator at the departure and arrival areas of all terminals at DIA. According to Generation Research, an independent industry specialist, the Company has grown to become one of the largest single airport travel retailer in the world, accounting for 5 per cent of airport shop sales and 3.2 per cent of the wider duty free and retail global business (which includes airports, airlines, ferries, border shops and other outlets) in 2010. For 2011, DDF generated revenues of Dhs5.3 billion.

Operating across 18,000 square meters of retail space with over 4,200 staff, DDF today sells to around 49 per cent of all DIA passengers and on average, handles 62,000 transactions per day.

In addition to its 89 outlets across the departures and arrivals sections of DIA, through which the Company conducts the bulk of its business, DDF also operates ‘duty paid’ kiosk shops in the public areas of DIA, Cargo Village, Airport Free Zone, The Aviation Club and also operates an online internet service.

The Company also operates foreign exchange bureaus at DIA and as part of its Leisure Division has opened its first standalone hotel, The Jumeirah Creekside, at The Aviation Club. The Leisure Division also includes the Dubai Tennis Stadium, The Irish Village, and the Century Village group of restaurants.

As part of its role to promote Dubai to a global audience, DDF organises and sponsors major international sporting events including the Dubai Duty Free Tennis Championships, which is staged at the Dubai Tennis Stadium and attracts a global TV viewership of 400 million. Similarly, the Dubai Duty Free Irish Derby held at the Curragh Racecourse in Ireland, generates extensive media coverage for Dubai and the DDF brand.