The Middle East’s leading interior contracting company, Depa Interiors LLC, a subsidiary of Depa United Group (DUG), today signed a financing agreement with Mashreqbank and HSBC for a total facility of AED430 million to finance the AED 430 million Burj Dubai contract awarded to Depa Interiors LLC.
The announcement was made at a press conference held today attended by Mohannad Sweid, Depa United Group CEO, Mohamed Al-Mulla, CEO of HSBC Abu Dhabi and Omar Bouhadiba, Head of Corporate and Investment Banking at Mashreqbank, as well as other representative and officials.
“Depa’s strong growth over the past years has always been fueled by our ability to work with top tier partners across different sectors and business spheres,” said Sweid. “We are very happy to now be associated with two of the top banks operating in the region and on such a prestigious project.”
Depa was contracted by the joint venture of Samsung Corporation, Belhasa Six Construct and Arabtec Construction LLC, the main contractor of the Burj Dubai project (developed by Emaar Properties), to carry out the manufacture, supply, installation, construction and completion of all interior fit-outs for the 899 serviced and residential apartments including corridors, lift lobbies and the amenities levels.
“Mashreqbank is always proud to part in financing iconic projects of high importance which add value to Dubai as a leading international business hub,” stated Bouhadiba, Head of Corporate and Investment Banking at Mashreqbank. “So teaming up with these two renowned companies on such a prestigious project is both exciting and financially rewarding.”
Mashreqbank has the largest specialized contractor-financing unit in UAE and has long standing expertise in assisting companies with their project needs in the region. Over the past 10 years, Mashreqbank has assisted local and International contracting companies in financing over 1,000 projects with an aggregate value in excess of AED100 billion.
“Depa’s impeccable track record and project portfolio, its managerial and financial strength as well as its impressive project pipeline were key in our decision to extend the facility,” commented Mohamed Al-Mulla, CEO of HSBC Abu Dhabi “The company’s decision to execute its plans to attain economies of scope through back integration has had an immediate effect on Depa’s ability to better satisfy market requirements.”
HSBC was recently ranked as the leading Project Finance advisor and arranger in the Middle East, according to Middle East Economic Digest’s (MEED) with a total advisory mandates for projects worth over US$30 billion in 2006.
Driven by huge demand on interior work solutions in the region, DUG earned AED1.1 billion in revenues in the year 2006, which places it at top 20 specialist contractors globally. DUG had raised a total capital of AED475 million from selected investment houses and high-net-worth individual investors such as The National Investor , Emaar Industrial and Investment Co., Zabeel Investments, Al-Mal Capital, Al-Futtaim Capital and Global Investment House.
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