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DCA closes $1 billion Ijarah facility lead managed by DIB

An Ijarah is an Islamic-compliant leasing agreement. Dubai Islamic Bank (DIB) was appointed as the Mandated Lead Arranger to raise the capital to partially fund the development and expansion of Dubai International Airport.

Eight other banks that participated in the facility also as lead arrangers are: Standard Chartered Bank, ABN Amro, Deutsche Bank, WestLB, Development Bank of Singapore (DBS), Societe Generale, Depfa Bank, and DZ Bank.

Dubai Islamic Bank, Standard Chartered Bank, Deutsche Bank and ABN Amro were the joint book runners.

Shaikh Ahmed bin Saaed Al Maktoum, Chairman, DCA, said: "I am glad to announce the closure of this Ijarah facility that took shape when DCA was planning its expansion. I congratulate DIB for spearheading this mandate successfully and for bringing together such an impressive list of banks. The quality of the banks supporting the facility reflects the confidence that the financial markets have in Dubai, in the economic policies of Dubai, and in the growth prospects of DCA." "Besides, this deal reinforces the Dubai Government's conscious decision to opt for Islamic financing and its success," he continued.

"The work on Dubai International Airport has been progressing very satisfactorily, and with the closing of $1 billion Ijarah facility we are confident of completing the project as planned. With the completion of the second phase of expansion, Dubai International Airport will have the capacity to handle 70 million passengers per annum. Dubai is set to become one of the major commercial and leisure hubs, not just in the region but in the world," he said.

Dr Mohammed Khalfan bin Kharbash, UAE Minister of State for Financial and Industrial Affairs and Chairman of DIB said: "I am delighted to announce the closure of this landmark deal. The participation of eight banks from around the world underlines the strength of Dubai's presence in the international capital markets, and the maturity of Islamic financial solutions."