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Jumeirah Group raises $1.4b billion syndicated loan

Staff writer |
Jumeirah Group has raised a US$1.4 billion unsecured syndicated loan priced at 2.75% above LIBOR due 2019. The facility was lead arranged by Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD, HSBC, Mashreq and Standard Chartered.

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The loan will be used for expansion plans as Jumeirah continues to grow in the years ahead as well as for general corporate purposes, at the parent level, for Dubai Holding Commercial Operations Group.

"The pricing we have been able to achieve for this syndicated loan is a testament to the Company’s financial strength and future prospects. This financing will support our focus on driving profitable revenues from the existing portfolio while giving us the headroom to continue our local and international expansion.

"This is the first time we have raised funds through a syndicated loan and we are pleased to be supported by the highest calibre of international and local banks," said Gerald Lawless, president and group chief executive officer.

Year to date September 2013, average occupancy in Jumeirah’s portfolio of hotels has increased by 8% globally, compared to the same period in 2012. In the same period the revenue per available room, an industry standard for measuring performance, rose by 15%.

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