Government-owned Nakheel Group, developer of palm-frond shaped islands off Dubai's coast, has raised $1.875 billion in an Islamic loan for general financing purposes, a banker at one of the arranging banks said on Monday.
The five-year amortising facility was arranged as an ijara, or lease structure, at a margin of 85 basis points over the London Interbank Offered Rate (LIBOR), said the banker, who declined to be named.
Twenty-four banks including Standard Chartered, Barclays, Dubai Islamic Bank, the National Bank of Abu Dhabi, Emirates Bank and the National Bank of Dubai arranged the loan.
Islam bans lending on interest, and Islamic bonds and loans are structured as asset-backed transactions that give investors a share of rent or profit.
Nakheel raised $3.52 billion from Islamic bonds in December, the largest such sale to date.
The company is building three palm-shaped islands and an archipelago designed to look like the map of the world to host hotels, shopping malls and homes.
Dubai bought the Cunard liner Queen Elizabeth 2 in June to turn it into a floating hotel off the Palm Jumeirah, the smallest of the palm islands.Source
The five-year amortising facility was arranged as an ijara, or lease structure, at a margin of 85 basis points over the London Interbank Offered Rate (LIBOR), said the banker, who declined to be named.
Twenty-four banks including Standard Chartered, Barclays, Dubai Islamic Bank, the National Bank of Abu Dhabi, Emirates Bank and the National Bank of Dubai arranged the loan.
Islam bans lending on interest, and Islamic bonds and loans are structured as asset-backed transactions that give investors a share of rent or profit.
Nakheel raised $3.52 billion from Islamic bonds in December, the largest such sale to date.
The company is building three palm-shaped islands and an archipelago designed to look like the map of the world to host hotels, shopping malls and homes.
Dubai bought the Cunard liner Queen Elizabeth 2 in June to turn it into a floating hotel off the Palm Jumeirah, the smallest of the palm islands.Source
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