{"id":5311,"date":"2017-07-16T17:46:07","date_gmt":"2017-07-16T17:46:07","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/doha-malls-1-bln-plus-loan-refinancing-frozen-amid-qatar-boycott-sources\/"},"modified":"2017-07-16T17:46:07","modified_gmt":"2017-07-16T17:46:07","slug":"doha-malls-1-bln-plus-loan-refinancing-frozen-amid-qatar-boycott-sources","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/doha-malls-1-bln-plus-loan-refinancing-frozen-amid-qatar-boycott-sources\/","title":{"rendered":"Doha mall\u2019s $1 bln-plus loan refinancing frozen amid Qatar boycott -sources"},"content":{"rendered":"<p>\n<\/p>\n<div itemprop=\"description\" readability=\"119\">\n<p>DUBAI\/DOHA  \u2013 The refinancing of a $1 billion <a href=\"https:\/\/amazingproperty.com.ng\/blog\/fast-flexible-real-estate-loans-usa\/\">loan<\/a> by Doha Festival City, a retail and hospitality complex in Qatar, has been indefinitely postponed as a diplomatic crisis deters regional banks from doing new Qatari business, bankers said.<\/p>\n<figure id=\"attachment_379106\" style=\"width: 250px\" class=\"wp-caption alignnone\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2013\/04\/Qatar0.jpg?resize=250%2C177\" data-lazy-src=\"https:\/\/i0.wp.com\/d19lga30codh7.cloudfront.net\/wp-content\/plugins\/lazy-load\/images\/1x1.trans.gif\" alt=\"\" width=\"250\" height=\"177\" class=\"size-full wp-image-379106\" srcset=\"http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2013\/04\/Qatar0.jpg 250w, http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2013\/04\/Qatar0-160x113.jpg 160w, http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2013\/04\/Qatar0-170x120.jpg 170w, http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2013\/04\/Qatar0-50x35.jpg 50w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\"\/><noscript><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2013\/04\/Qatar0.jpg?resize=250%2C177\" alt=\"\" width=\"250\" height=\"177\" class=\"size-full wp-image-379106\" srcset=\"http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2013\/04\/Qatar0.jpg 250w, http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2013\/04\/Qatar0-160x113.jpg 160w, http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2013\/04\/Qatar0-170x120.jpg 170w, http:\/\/d19lga30codh7.cloudfront.net\/wp-content\/uploads\/2013\/04\/Qatar0-50x35.jpg 50w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\"\/><\/noscript><figcaption class=\"wp-caption-text\">Aspire Dome is seen in Doha in this aerial view. Qatar will host the 2022 World Cup.<\/figcaption><\/figure>\n<p>The refinancing, coordinated by Doha-based investment bank QInvest, was marketed earlier this year to both Qatari and regional banks, including institutions in the United Arab Emirates. It was to have been larger in size than the original loan \u2013 perhaps around $1.2 billion, bankers said.<\/p>\n<p>But Saudi Arabia, the UAE, Egypt and Bahrain cut diplomatic and transport ties with Qatar on June 5, accusing it of supporting terrorism, and the proposed deal has been put on hold, the sources said.<\/p>\n<p><!-- between content ad --><\/p>\n<p>Two Qatari bankers involved in the deal told Reuters that the diplomatic crisis was the main reason for the deal being postponed, as it had reduced banks\u2019 appetite for the transaction. The sanctions against Qatar meant non-Qatari banks would not participate, a senior banker in Doha said.<\/p>\n<p>\u201cOriginally, the refinancing included some of the original <a href=\"https:\/\/amazingproperty.com.ng\/blog\/construction-loans-for-commercial-and-residential-builders\/\">lenders<\/a> plus big banks from the UAE. Now it is not clear that the deal is going to happen,\u201d he said, speaking on condition of anonymity as the matter is private.<\/p>\n<p>\u201cAfter the sanctions, the deal became more and more unlikely \u2013 politics didn\u2019t improve things.\u201d<\/p>\n<p>Another banker said Qatari banks looked at the refinancing when market interest rates were lower, but they were no longer keen on it now the crisis had tightened liquidity in the local market. The three-month Qatar interbank offered rate has jumped more than 50 basis points since early June.<\/p>\n<p>\u201cNow it\u2019s definitely not a priority. Banks, and their shareholders, have other things to worry about,\u201d the second banker said.<\/p>\n<p>The boycotting countries\u2019 central banks have stopped short of explicitly asking commercial banks under their jurisdiction to stop lending to Qatar. But unofficial guidance by their governments has caused most regional banks to freeze new loan transactions for Qatari borrowers since last month.<\/p>\n<p>Doha Festival City, which includes the world\u2019s biggest store under the brand name of French retailer Monoprix, is owned and developed by Bawabat Al-Shamal <a href=\"https:\/\/amazingproperty.com.ng\/blog\/property-center-nigeria\/\">Real Estate<\/a> Co, a joint venture comprising Dubai-based Al-Futtaim Real Estate Services, Qatar Islamic Bank, Aqar <a href=\"https:\/\/amazingproperty.com.ng\/blog\/create-a-real-estate-passive-income-stream\/\">Real Estate Investment<\/a> Co and a private Qatari investor.<\/p>\n<p>It raised some 3.7 billion Qatari riyals ($1.02 billion)in 2012 through a 10-year syndicated loan to finance development of the project, which had an estimated total cost of around 6 billion riyals.<\/p>\n<p>That loan, comprising conventional and Islamic tranches, was led by QInvest with Commercial Bank of Qatar and Barwa Bank as mandated <a href=\"https:\/\/amazingproperty.com.ng\/blog\/real-estate-lead-strategies-2\/\">lead<\/a> arrangers. Ahli Bank, Doha Bank, International Bank of Qatar, Al Khaliji Commercial Bank, Qatar International Islamic Bank and Qatar National Bank also participated.<\/p>\n<p>Doha Festival City\u2019s shopping mall opened last April after a months-long delay which the owners attributed to issues with supporting infrastructure. Many of the mall\u2019s stores have not yet opened to the public.<\/p>\n<p>Mall and <a href=\"https:\/\/amazingproperty.com.ng\/blog\/choosing-the-perfect-hotel-for-your-stay\/\">hotel<\/a> owners in Qatar have expressed concern about a dwindling customer base after government bodies fired thousands of expatriates in recent years amid declining global oil and gas prices.<\/p>\n<p>The sanctions against Qatar could worsen that situation, although because of Doha\u2019s huge financial reserves, analysts do not expect an economic crisis. (Editing by Andrew Torchia and David Evans)<\/p>\n<\/p><\/div>\n<p><a hre=\"http:\/\/www.vanguardngr.com\/2017\/07\/doha-malls-1-bln-plus-loan-refinancing-frozen-amid-qatar-boycott-sources\/\"> Vanguard <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>DUBAI\/DOHA \u2013 The refinancing of a $1 billion loan by Doha Festival City, a retail and &hellip; <a title=\"Doha mall\u2019s $1 bln-plus loan refinancing frozen amid Qatar boycott -sources\" class=\"hm-read-more\" href=\"https:\/\/amazingproperty.com.ng\/blog\/doha-malls-1-bln-plus-loan-refinancing-frozen-amid-qatar-boycott-sources\/\"><span class=\"screen-reader-text\">Doha mall\u2019s $1 bln-plus loan refinancing frozen amid Qatar boycott -sources<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":5312,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4],"tags":[1399,1007,818],"class_list":["post-5311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-development","tag-owners","tag-real"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/07\/Qatar0.jpg?fit=250%2C177&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/5311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=5311"}],"version-history":[{"count":0,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/5311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media\/5312"}],"wp:attachment":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=5311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=5311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=5311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}