Some banks are baulking at participating in funding an extension of Dubai’s metro because the proposed pricing, they say, does not reflect banks’ higher costs and the impact of lower oil prices on liquidity, bankers familiar with the matter said.
The government wants to borrow $2.8 billion for the 15km extension to the site of the World Expo, being hosted by Dubai in 2020. Of that, $1.2 billion will be commercial loans and the rest, loans guaranteed by export credit agencies.
Several other multi-billion dollar infrastructure projects are expected over the next few years in Dubai, and the prospects of financing them might be influenced by the result of the metro loan talks. More info
By Reuters www.arabianbusiness.com