Dnata has signed its first-ever financing agreement through its fully owned subsidiary Kedma Holdings Pte Ltd, raising Singapore dollars 140 million (approx. Dhs 315 million) to finance its acquisition of Singapore-based Changi International Airport Services (CIAS).

CIAS is an integrated ground handling service provider at Singapore`s Changi Airport. Dnata initially acquired a 78.4 per cent shareholding in CIAS from Singapore based Temasek Holdings (Private) Limited in October 2004. Subsequently, Dnata acquired the remaining 21.6 per cent and became sole owner of CIAS. This move is in tandem with Dnata`s steady expansion of its operations overseas, with the company already exporting its ground handling expertise to airports in Pakistan, Iran, Sudan and the Philippines.

Gary Chapman, Emirates Group`s President Dnata and Associated Companies, the Emirates Group, said: This is a significant investment by Dnata and reflects our belief that Singapore will continue to grow and prosper as a major aviation hub in Asia. We are well advanced in working together to maximize the many synergies between Dnata and CIAS, and exchange ideas on best working practices.

The acquisition financing, over a 10-year term, was lead arranged and funded by Standard Chartered Bank, with DBS Bank, Overseas China Banking Corporation (OCBC) and United Overseas Bank (UOB), all based in Singapore. It carries a margin of 0.90 percent over a six month SOR (Singapore Dollar Swap Offer Rate).

Ray Ferguson, Standard Chartered`s Chief Executive, UAE noted: Standard Chartered is very pleased to have worked closely with Dnata from the time of acquisition of CIAS to lead arranging this landmark financing.

Ferguson added: With a strong presence in the Middle East and Asian markets, the Bank is able to tap the international debt markets to provide our clients with innovative financing structures best suited to their financing requirements. We are delighted to arrange financing for this transaction with the participation of major Singapore based banks.

Riyaz Peermohamed, Emirates Group`s Senior Vice President Corporate Treasury, said: This is a landmark deal. It is both the first-ever financing by Dnata and also the first time the Emirates Group has completed a financing agreement in Singapore dollars.

He added: The deal was done in Singapore dollars to create a new source of financing and a natural hedge, so that inflows from CIAS could be used to satisfy the Singapore dollar obligations under the financing. We also took advantage of the very low Singapore dollar interest rates.

Photo: Dnata signs its first -ever financing agreement. Present at the signing were (standing from left): John Lossifidis, Regional Head of Client Relationships-MESA, Standard Chartered Bank; Riyaz Peermohamed, Emirates Group`s Senior Vice President Corporate Treasury; Vivek Uberoi, Unit Head Large Local Corporates, Standard Chartered Bank; and (seated from left): Christine Tan, Vice President Wholesale Corporate Marketing, OCBC Ltd; Ray Ferguson, CEO, Standard Chartered Bank; Gary Chapman, Emirates Group`s President Dnata and Associated Companies; Peter Davis, Senior Vice President, DBS Bank Ltd; and Tan Ket Kiong, First Vice President,United Overseas Bank Ltd.