News Column

Atlantis, The Palm looks to refinance $880m loan

August 31, 2014

DUBAI'S ISLAND resort, Atlantis, The Palm, owned by Investment Corporation of Dubai (ICD) is looking to reprice or refinance an $880 million syndicated loan signed in September 2013, banking sources said.The five-year loan was provided by seven local and international banks comprising Barclays, HSBC, Abu Dhabi Commercial Bank, National Bank of Abu Dhabi, Commercial Bank of Dubai, Union National Bank and Emirates NBD and was priced at 500 basis points (bps) over LIBOR.

Atlantis The Palm was one of a handful of loans last year that highlighted a fragile recovery in the UAE after the financial crisis. However, despite a more bullish market in the country it is unclear if Atlantis, a highly leveraged single asset business, would be able to reprice its loan easily.

Bankers are predicting a fall in loan pricing in the region as liquid local banks and international banks desperate to deploy capital create an attractive environment for borrowers. As a result bankers are confident Atlantis will be able to get a deal done. "Atlantis is a very leveraged single asset but a deal will still get done, and it will be a good reference point going forward," one banker stated.

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Source: Gulf, The (Bahrain)

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