Dubai govt says picks HSBC to arrange $3bln airport financing

The government of Dubai has chosen HSBC to arrange initial funding of $3 billion towards the expansion of Al Maktoum International Airport, according to a statement on UAE state news agency WAM.

The financing will be raised by a consortium of Dubai state entities, comprising of the Department of Finance, state-owned fund Investment Corporation of Dubai, and the Dubai Aviation City Corporation.

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The funds will come from a variety of sources and will include conventional and Islamic tranches, the statement added.

Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum in September 2014 approved a $32 billion investment to expand the emirate's second airport, with an aim to handle up to 120 million passengers a year by 2022.

Zawya