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Nakheel PJSC has raised AED 17 billion (46 billion dollars) in loans from a group of local lenders as developers of Dubai’s artificial palm-shaped islands look to launch new projects amid the city’s real estate boom. billion) was secured.
The company has raised AED 11 billion to refinance and consolidate existing debt, the company said in a statement to Bloomberg on Tuesday. Nakheel said he will use the rest of his AED 6 billion to “accelerate the development of new projects, including the Dubai Islands and other large-scale waterfront projects.”
Funding was secured through a syndicate of three local lenders: Emirates NBD PJSC, Dubai Islamic Bank PJSC and Mashrek Bank PSC.
Nakheel got the loan at a crucial time. Rising interest rates have hit once-booming real estate markets around the world, making them more expensive for developers who rely primarily on loans and bonds to raise money. Nakheel was at the center of his 2009 real estate crash, which nearly bankrupted the emirate, but has since consolidated operations and cut costs.
The company is now headquartered in Dubai, where markets are benefiting from an influx of wealthy investors, including Russians looking to protect their assets, bankers fleeing stringent Covid regulations in Asia, and wealthy Indians seeking second homes. is taking advantage of the real estate boom.
Nakheel is currently planning to build yet another artificial island called Dubai Island, where beachfront apartments will be built.
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