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6 Mar 2012 By Una Galani Follow @ugalani

The emirate wants to borrow at least $500 million against its giant airport retailer’s future revenue. Rising passenger numbers and expanding retail space seem immune to Dubai’s debt hangover. And securitisation looks increasingly attractive as Western banks withdraw.

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Dubai plans to raise funds by selling debt based on future revenue at Dubai Duty Free, one of the world’s largest airport retailers, three sources told Reuters on March 6.
The Gulf Arab emirate’s Department of Finance is working in tandem with the Investment Corporation of Dubai (ICD), which owns the retail operator, said the sources, who spoke on condition of anonymity.
Dubai is planning to raise at least $500 million from the securitisation, one banking source said, adding requests for proposals for the transaction was sent to banks and a final mandate was yet to be announced.
“There is an exercise going on within Department of Finance with ICD to look to see whether there could be a securitisation of Dubai Duty Free funding,” another source, familiar with the matter, told Reuters.
In July, the emirate completed an $800 million financing deal with lenders based on securitising receipts from its toll road system, known as Salik.

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