Construction specialist Carillion, which employs around 1,500 people in the North East, has struck a £75m deal to deliver Phase 1 of the Dubai World Trade Centre District development.
Through the contract Carillion has become the first company to use the Government’s new Direct Lending Facility (DLF), provided by UK Export Finance (UKEF),
A US$110m (£68m) buyer credit loan, under the DLF, helped Carillion to secure the deal which will involve 146,000 square metre of development in the city’s Central Business District, including an eight storey office building and a 588-room business and tourism hotel.
The loan has been arranged by Deutsche Bank who are also providing 50% of the lending.
The Phase 1 development will include international Grade A quality offices, which have achieved LEED® Gold pre-certification from the US Green Building Council - the industry benchmark for green building performance covering design, construction, operations and maintenance.
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 twenty 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, added: “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.”
The Direct Lending Facility, makes £3 billion available to support export finance on a first come, first served, basis. Under the scheme UKEF provide funding at the Commercial Interest Reference Rate with partner banks arranging loans.
Under the scheme the Government provide loans to overseas buyers to finance the purchase of capital goods and/or services, from exporters carrying on business in the UK. Loans can be made in Sterling, US Dollars, Euro or Japanese Yen.