Dubai Duty Free (DDF) has completed the repricing of its $1.75bn loan facility – originally signed in July 2012 – as well as its US$750m syndicated financing facility signed in September 2013.

 

The repricing transaction was launched on the 7th of August 2014 “on the back of improved bank market conditions and to reflect DDF’s strong performance over the past 12 months,” says DDF.

 

According to DDF, the transaction was very well received by the existing lenders with several institutions offering to provide increased commitments.

 

Dubai Duty Free has also successfully concluded a re-pricing exercise in relation to an additional US$750m loan or ‘syndicated financing facility’, which was originally signed in September 2013.

 

Bernard Creed, Vice President Finance, Dubai Duty Free [left] spoke about the company’s relatively recent financing exercises at last week’s Trinity Forum.

 

As reported by TRBusiness.com, DDF originally mandated Abu Dhabi Commercial Bank, Emirates NBD Capital Limited and Standard Chartered Bank – and each of their respective affiliates – to arrange the senior unsecured conventional and Islamic financing facilities.

 

SALES FORECAST TO REACH $2.85BN

This included a conventional term loan and Islamic facilities, with the main purpose to finance the further development of Dubai International Airport (DIA). The original loan was to finance the development of Dubai International Airport until 2020.

 

Creed forecast Dubai Duty Free’s retail sales to reach $2.85bn by 2020 and passenger growth to 94.6m by the same year. Spend per passenger is also predicted to grow, with spends by terminal reported at $33 in T1 in 2011; $17 in T2; and $27 in T3.

 

In its data presentation to its lenders, DDF also said: “Forty years ago, 76% of world’s traffic was between North America, Western Europe and Japan. DDF’s revenues have risen at a compound annual growth rate of 17.2% for the period 1984 to 2011. The traffic between the above mentioned, however, is estimated to decline to 30% of world traffic in 2030.

 

“Dubai is positioned uniquely between established and emerging markets. The average revenue per kilometre growth of Middle Eastern airlines is forecast to grow at a CAGR of 7.4% over the next 18 years; this is the highest growth rate of all regions.”