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Dubai Duty Free Repricing of Existing Senior Unsecured Conventional and Islamic Financing Facilities

Dubai Duty Free Shopping Complex in Concourse A

Dubai Duty Free (DDF) is pleased to announce that it has successfully concluded the repricing of its USD 1.75 billion debut facility arranged in 2012. Due to DDF’s strong business performance and a substantially improved credit market environment, particularly in Dubai, DDF successfully managed to reduce the margin on its AED and USD commitments.

July 15, 2013 3:47 by



Dubai Duty Free (DDF) is pleased to announce that it has successfully concluded the repricing of its USD 1.75 billion debut facility arranged in 2012. Due to DDF’s strong business performance and a substantially improved credit market environment, particularly in Dubai, DDF successfully managed to reduce the margin on its AED and USD commitments.

The Repricing was very well received by the market with strong support from its existing syndicate of international, regional and local banks, with several institutions also offering to increase their commitments as well as accepting the lower pricing. However, given the overwhelming success of the transaction with nearly all lenders consenting, no new commitments needed to be allocated.

The Transaction demonstrates the strong demand for solid Dubai businesses with strong fundamentals and appropriate financing structures.

Citibank, N.A., London Branch acted as sole co-ordinator and bookrunner for the Company in connection with this Transaction.

Commenting on the Transaction, Colm McLoughlin, Executive Vice Chairman of Dubai Duty Free said:

“I am very pleased with the response from the banks in relation to the repricing. Their enthusiasm is a reflection on the strength of Dubai Duty Free’s business fundamentals, cash flows and our future growth projections. Our sales this year are on target to reach US$1.8 billion and looking ahead, we expect to grow sales to US$3 billion within five years.”

Lenders that participated in this Repricing exercise were: Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Ajman Bank PJSC, Ahli United Bank, Al Hilal Bank P.J.S.C, Arab Bank plc, BBK BSC, Citibank N.A., UAE Branch, Commercial Bank International PSC., Dubai Islamic Bank PJSC, Emirates NBD Bank PJSC, First Gulf Bank, Gulf Bank KSC, Gulf International Bank B.S.C., HSBC Bank Middle Limited, MashreqBank psc., National Bank of Abu Dhabi PJSC, National Bank of Kuwait SAK-Dubai Branch, Noor Islamic Bank PJSC, Qatar National Bank S.A.Q., Samba Financial Group,  Sharjah Islamic Bank PJSC., United Arab Bank (P.J.S.C.) and Union National Bank PJSC.

 

About DDF

DDF is a Decree company established in December 1983 as the sole duty free operator at Dubai Airports. For 2012, DDF generated revenues of AED 5.7 billion (c. USD 1.56 billion).

Operating across [26,000] square meters of retail space with approximately [6,000] staff, DDF today sells to around [47%] of all DIA passengers and on average, handles [61,400] transactions per day.  In addition to its [89] outlets across the departures and arrivals sections of DIA, through which DDF 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. In 2012 DDF opened its first border shops in Hatta between the UAE and Oman borders. DDF also operates foreign exchange bureaus at DIA and as part of its Leisure Division it has recently opened its first standalone hotel at The Aviation Club, with management to be provided by the Jumeirah Group. The Leisure Division also includes the Dubai Duty Free Tennis Stadium, The Irish Village, and the Century Village group of restaurants.

In 2009, 100% ownership of DDF was transferred to Investment Corporation of Dubai (“ICD”).  ICD is the investment arm of the Government of Dubai, with ownership of the Government of Dubai’s portfolio of companies and investments. It was established in May 2006, pursuant to a decree issued by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. ICD’s role is to devise and implement the Government of Dubai’s investment strategy and to manage its portfolio of investments with the aim of maximising value for Dubai. ICD’s investment portfolio features some of Dubai’s flagship entities spanning the utilities, energy, transportation, finance, industry, real estate and leisure sectors, such as:  Emirates National Oil Company (ENOC), the Emirates Group, DDF, Emirates NBD, Dubai Islamic Bank, Commercial Bank of Dubai, Borse Dubai, Dubai Aluminum Company Limited (DUBAL), Emaar Properties, and Dubai World Trade Centre, among others.



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