Government backing helps Carillion secure £75m Dubai contract
CARILLION is the first company to benefit from the Government’s new Direct Lending Facility.
The backing has allowed it to secure a £75m contract to deliver Phase 1 of the Dubai World Trade Centre District development for the Dubai World Trade Centre.
The Chancellor of the Exchequer announced that the Wolverhampton construction and support services firm Carillion will be the first business to rbe backed by the facility which is being provided by UK Export Finance (UKEF) to boost UK exports.
Under the Direct Lending Facility, HM Treasury has made £3bn available to support export finance on a first come, first served, basis that enables UKEF to provide funding at the Commercial Interest Reference Rate with partner banks arranging loans.
Carillion already has a strong relationship with UKEF, having secured a number of contracts in the Middle East and North Africa with the support of UKEF’s Standard Buyer Credit Facility.
The latest contract to be secured with the support of UKEF is a £75m contract to deliver Phase 1 of the Dubai World Trade Centre District development for the Dubai World Trade Centre, using UKEF’s new Direct Lending Facility with the loan being arranged by Deutsche Bank.
The contract involves the construction of a 146,000 sq m development between the current Dubai International Convention and Exhibition Centre and Emirates Towers in the heart of the city’s Central Business District that will include an eight storey office building and a 588-room business and tourism hotel.
The development will be designed to best-in-class quality standards and Phase 1 will include international Grade A quality offices.
Chancellor of the Exchequer George Osborne said: “Helping British companies to access global markets is a key part of our long-term economic plan. So I’m delighted to announce the first deal supported by UK Export Finance’s Direct Lending Facility, along with the 20 financial institutions that are going to help us deliver the loans.
“It is great to see successful companies like Carillion winning contracts around the world. This deal, the first in a pipeline of many will help us reverse the age old trend of not exporting enough, boosting growth and creating jobs.”
Carillion chief executive Richard Howson said: “We have built a strong relationship with UKEF, which is helping companies like Carillion to use its sector-leading expertise and reputation for quality, reliability and safety to win major contracts.
“The new Direct Lending Facility is an exciting development, which will further enhance our ability to use Carillion’s world-class skills to compete and win contracts in our international markets.”
