Dubai said to seek $2.5bn loans to expand metro for Expo

A Dubai Metro train passes along the rail line beside the Sheikh Zayed highway in Dubai. Dubai is seeking $2.5bn in loans to finance a 15-kilometre (9-mile) extension of its above-ground metro line to the World Expo site, according to two people with knowledge of the plan, Bloomberg reported. Banks submitted proposals this week to the emirate’s department of finance, including a $1.34bn facility backed by European export credit agencies, said the people, asking not to be identified because the information isn’t public yet. Lenders also bid for a $1.12bn unsecured, commercial facility that is guaranteed by the Dubai government, they said. Funding is expected to be provided mainly by international banks, the people said. The ECA-backed facility has a maturity of 18 years, while the commercial loan has a 10-year tenor, one of the people said.