The government of Dubai has put in place $3 billion of credit facilities for the future development of both Dubai International (DXB) and Dubai World Central (DWC) airports.

Dubai International is the world’s busiest international airport, while Dubai World Central, also known as Al Maktoum International, will eventually be the world’s largest airport in terms of passenger volumes. It will also become Dubai’s primary airport, with Emirates Airline moving there from 2025. By that point, DWC will be able to serve up to 146 million passengers annually.

Dubai’s Department of Finance (DOF), the Investment Corp. of Dubai and Dubai Aviation City Corp., announced May 14 they had signed agreements putting in place the funding facilities. These represent the initial tranche of financing as part of a long-term funding platform established for Dubai Airports. HSBC acted as the financial advisor.

“Dubai remains firmly committed to the development of DWC and to growth of the global aviation sector, and this initial $3 billion transaction to support Dubai’s ambitious 2025 passenger capacity target is testament to our belief,” said Sheikh Ahmed bin Saeed Al Maktoum, who holds multiple roles as the chairman of Dubai Civil Aviation Authority, chairman of Emirates Group and chairman of Dubai’s Supreme Fiscal Committee.

“In line with Dubai’s vision to maintain its status as one of the world’s most important cultural and commercial centers, the planned expansion of both of the city’s airports is critically important,” DOF director general Abdulrahman Saleh Al Saleh said.

The final bank group consisted of 12 international and local institutions who acted as Joint mandated lead arrangers and joint bookrunners. The facilities were oversubscribed by more than 50%.

Dubai Airports, which operates DXB and DWC, declined to comment, directing inquiries to the DOF, which was not available for comment.

Alan Dron