In an announcement, Atlantis, The Palm is in the process of raising a US$850 million syndicated loan for the refinancing of its existing debts as well provide fresh funds for its operations.
According to banking sources, the iconic island resort in Dubai would be refinancing a US$700 million, twelve year loan signed back in July 2005 with an interest price of 160 basis points over and above the LIBOR rate.
The loan's proceeds were used in the construction of the luxury hotel resort and aquatic theme park. The park opened in September 2008, with a joint venture ownership of Kerzner International Holdings Ltd and the UAE holdings company, Istithmar,
The resort became a wholly owned operation when Istithmar bought out Kerzner for US$250 million. Operations though still remained with Kerzner International Resorts.
The new US$850 million loan is being refinanced through the efforts of Barclays and HSBC with Abu Dhabi Commercial Bank, the National Bank of Abu Dhabi, the Union National Bank and the Commercial Bank of Dubai.
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