UAE Focus

Meydan Heights ‘symbol of optimism’

May 2011

MEYDAN Heights, a 528-unit gated community jointly promoted by Meydan and Emirates airline, will bring in a whiff of optimism in the market, said IDBI Bank.

The bank recently signed a financing deal with Meydan and will be releasing a $120-million long-term, syndicated loan to Meydan to develop a township community within its Meydan Heights cluster comprising 528 town houses and associated facilities.

The project is part of an agreement Meydan reached with Emirates airline, under which the latter will have access to the homes under a 15-year lease-to-own agreement.

“There is a lot of optimism coming to the market and with the announcement of this project the build-up has begun,” said N S Venkatesh, CEO of IDBI Bank, DIFC Branch.

“The financial market will be pleasantly surprised when the pricing and tenure of the loan are revealed shortly,” he said.
A lot of factors are considered before deciding on the loan terms like the tenor, the interest rate environment, the wider situation and the project itself. As far as the project is concerned Meydan has a lot in its favour. It was built in 22 months despite difficult market conditions, which showed the commitment of the management.

He further said: “The concept is good, project is good and brings together Meydan Group, Emirates airlines and IDBI bank, all three leaders in their fields. We chose Meydan as our first overseas financing partner because we believe in the project. This project will have a major impact not only on the development of Dubai but also globally.”

Established in 1964, Mumbai-headquartered IDBI Bank is India’s leading provider of project and infrastructure financing. Meydan Heights financing deal is the largest for an infrastructure project in the Middle East for IDBI Bank to date, and is also the bank’s first overseas financing of its kind.

“Our decision to set up an office in Dubai demonstrates our belief in the significant growth potential in the GCC region and the UAE in particular,” Venkatesh said.

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