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Dubai working with HSBC on $7 bln financing for Expo 2020

Tue, 13th Dec 2016 12:20

* HSBC appointed as ECA coordinator - sources

* Split between commercial loans and ECA funding to bedecided

* Extra funding for Expo-linked projects possible

By Davide Barbuscia and Tom Arnold

DUBAI, Dec 13 (Reuters) - Dubai is working with HSBC on the financing of Expo 2020 Dubai, a $7 billionexhibition centre project expected to attract 25 millionvisitors, sources familiar with the matter said.

The site will host Expo Dubai which will run from October2020 to April 2021 and will be the first World Expo hosted inthe Middle East, according to the Expo 2020 website.

The project provides more evidence that Dubai is back inexpansion mode after running into trouble during the 2009 globalfinancial crisis. The expo is a major part of Dubai's plans toexpand its infrastructure and boost its credentials as a touristdestination.

The financing will come from bank loans and from variousexport credit agencies, the sources said. HSBC has beenappointed to coordinate the export credit agencies and financingsupported by them, the sources said, adding that the splitbetween the commercial loans and the export credit financing wasyet to be defined.

Export credit-backed financing provides guarantees thatsupport the export and supply of domestic goods or contractorsor in some cases direct lending.

Expo 2020 Dubai was not immediately available to comment.HSBC declined to comment.

The exhibition centre project, in the Dubai South district,situated midway between Abu Dhabi and Dubai, will be 4kilometres long and 1.8 kilometres wide, according to itswebsite. The development will include a number of infrastructureprojects, an exhibition centre, academic and researchinstitutions and a technology cluster, the website said.

It will possibly also need additional funding on top of the$7 billion for projects linked to the event and led bygovernment entities such as Dubai Municipality, the DubaiElectricity and Water Authority, and Dubai's Roads and TransportAuthority, two of the sources said.

The expo site is located near Dubai's new airport, Al MaktoumInternational Airport. There are proposals for a $3 billionexpansion of the airport and HSBC is also advising thegovernment on the financing for this project.

(Editing by Jane Merriman)

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Copyright 2023 Alliance News Ltd. All Rights Reserved.

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