Carillion has won a £75m deal to build phase one of the Dubai World Trade Centre District development, the first contract to be supported by a direct lending facility from the Treasury.
The facility is being provided by UK Export Finance, set up to boost UK exports, through which the Treasury has made £3bn available for export finance for UKEF to provide funding with partner banks arranging loans.
Carillion has already secured contracts in the Middle East and North Africa using UKEF’s standard buyer credit facility.
This contract is to deliver Phase 1 of the Dubai World Trade Centre District development for the Dubai World Trade Centre, with the loan arranged by Deutsche Bank.
It will build a 146,000 sq m development between the current Dubai International Convention and Exhibition Centre and Emirates Towers in the city’s central business district to include an eight storey office building and a 588-room business and tourism hotel.
Chancellor George Osborne said: “Helping British companies to access global markets is a key part of our long term economic plan. So I’m delighted to announce the first deal supported by UK Export Finance’s Direct Lending Facility, along with the twenty financial institutions that are going to help us deliver the loans.
“It is great to see successful companies like Carillion winning contracts around the world. This deal, the first in a pipeline of many will help us reverse the age old trend of not exporting enough, boosting growth and creating jobs.”
Carillion chief executive, Richard Howson, added: “We have built a strong relationship with UKEF, which is helping companies like Carillion to use its sector-leading expertise and reputation for quality, reliability and safety to win major contracts. The new Direct Lending Facility is an exciting development, which will further enhance our ability to use Carillion’s world-class skills to compete and win contracts in our international markets.”