Nakheel PJSC secured 17 billion dirhams ($4.6 billion) in financing from a group of local lenders, as the developer of Dubai’s artificial palm-shaped islands seeks to kick-off new projects amid a property boom in the city.
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The company raised 11 billion dirhams to refinance and consolidate its existing debt, it said in a statement to Bloomberg on Tuesday. Nakheel will use the remaining 6 billion dirhams to “accelerate the development of its new projects including Dubai Islands and other large waterfront projects,” it said.
The financing was secured through a syndicate of three local lenders -- Emirates NBD PJSC, Dubai Islamic Bank PJSC and Mashreqbank PSC.
Nakheel obtained the loan at a significant time. Interest-rate hikes have battered once-booming real estate markets around the world, making it more expensive for developers that mainly rely on loans and bonds to raise funds. Nakheel was at the center of a property crash in 2009 that nearly bankrupted the emirate, but has since consolidated operations and cut costs.
The company is now tapping a real estate boom in Dubai where the market is benefitting from an influx of wealthy investors such as Russians seeking to shield their assets, bankers fleeing strict Covid restrictions in Asia and rich Indians seeking second homes.
{{/usCountry}}The company is now tapping a real estate boom in Dubai where the market is benefitting from an influx of wealthy investors such as Russians seeking to shield their assets, bankers fleeing strict Covid restrictions in Asia and rich Indians seeking second homes.
{{/usCountry}}Nakheel now plans to construct yet another set of man-made islands called Dubai Islands, which will have beachfront apartments.