Kerzner and Istithmar secure Atlantis funds

Developers sign a US $700 million financing deal with a consortium of banks from around the world.

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By  Colin Foreman Published  August 7, 2005

Istithmar and Kerzner have entered into a US $700 million (AED2.6 billion) financing agreement for the Atlantis resort on the Palm Jumeirah. The deal was signed with a consortium of banks, including: Abu Dhabi Commercial Bank, Barclays Capital, the investment banking division of Barclays Bank, The Commercial Bank of Dubai, Emirates Financial Services, the investment banking arm of Emirates Bank and HSBC Bank, (together the ‘Mandated Lead Arrangers’) to arrange the $700 million, 12-year loan facility. “We are pleased that this landmark and strategic project is matched by the first of its kind financing in the region,” Sultan bin Sulayem, executive chairman of Istithmar said, adding: “Achieving a non-recourse financing deal of this size outside the power and petrochemical sector is a landmark transaction for the region.” The facility, which is fully underwritten by the Mandated Lead Arrangers, will be used for the financing of the construction and furnishing costs and expenditures related to the opening of the project. Atlantis, The Palm will include two hotels with a total of approximately 2000 rooms, conference and meeting facilities. It will also be home to the largest aquatic theme park in the region. The project, which is valued at around $1.2 billion, will be financed through the $700 million loan facility and $500 million of equity.

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