Abu Dhabi Al Hikma Development Company, a wholly owned subsidiary of Mubadala Development Company, today announced the completion of the limited-recourse financing of the UAE University New Campus PPP Project in Al Ain, UAE.
A syndicate of international and regional banks is providing the US$410,000,000 debt package to the region’s first, and the world’s largest, single education public-private partnership project. The mandated lead arrangers are Barclays Capital, National Bank of Abu Dhabi, Royal Bank of Scotland and Societe Generale.
“We are pleased to have secured the financing on such a prestigious project. The UAE University New Campus PPP Project is strategically important to Mubadala and we are proud to be working with the UAE University in providing world-class facilities that will enable them to continue to raise the standards of education in the UAE and the region. This is a benchmark project for the development of future social infrastructure and PPP projects in the UAE and the region. We expect it to be the first of many currently being developed by Mubadala”said Waleed Al Mokarrab Al Muhairi, COO of Mubadala Development. “Our vision is for the UAE University to be the flagship institution of the higher education in the region. This PPP project will ensure that we maintain excellent teaching and an effective learning environment focusing on international recognition of excellence”said Dr Hadef Bin Jouan Al-Dhaheri, Vice Chancellor of the UAE University.
The new campus, currently under construction, will feature approximately 290,000m2 of newly built, state-of-the-art teaching and recreational facilities, including accommodation for students and university staff. The first phase of the project will be completed in 2008.
The construction contract for the UAE University was awarded to Oger Abu Dhabi LLC, a subsidiary of Saudi Oger, in December 2006.
Mubadala Development Company is an investment and development vehicle established and wholly owned by the Government of the Emirate of Abu Dhabi. Its mission is to invest in commercially-viable, strategic, industrial and commercial partnerships. The company manages a diversified portfolio of local, regional, and international investments. International investments include the Dutch fleet management giant LeasePlan Corporation (25% stake), and a stake in nine oil exploration blocks in Libya.
Stakes are also held in the Swiss aircraft and engine services provider SR Technics (40%), the Italian luxury car manufacturer Ferrari (5%), and Piaggio Aero Industries (35%). In the United Arab Emirates and wider Gulf region, Mubadala Development has invested in, and developed, a number of leading projects including the first GCC cross-border natural gas project, Dolphin Energy (51% majority stake), Aldar Properties, Abu Dhabi Future Energy Company (Masdar), Tabreed, Abu Dhabi Ship Building, Imperial College London Diabetes Centre in Abu Dhabi, Injazat Data Systems and the Mukhaizna Oil Field developments in Oman.
Mubadala Development signed a joint development agreement with Dubai Aluminium Company (DUBAL) to develop, construct, own and operate a USD 8-billion world class green-field aluminium smelter complex with 1.4-million tons capacity a year at the Khalifa Port and Industrial Zone in Abu Dhabi. Mubadala and DUBAL are also developing a US $5 billion smelter with a 700,000 tones capacity in Algeria. Mubadala is also actively participating in the provision of new higher education facilities in Abu Dhabi with world-renowned Universities through the PPP route.