Etihad Rail said to name banks this month for $1.3 Billion loan

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Source:  www.bloomberg.com

Abu Dhabi’s Etihad Rail, which is building the United Arab Emirates’ first rail network, will take a decision this month on a $1.3 billion loan to fund the first phase of the project, two bankers familiar with the plan said.

The loan will have a maturity of five or ten years and payments will be backed by Abu Dhabi National Oil Co., the main user of the railway, according to the bankers, who asked not to be identified because the information is private.

Etihad Rail’s initial segment will link the Shah natural gas field, southwest of Abu Dhabi, to oil and gas treatment facilities at Habshan, closer to the Emirate’s coast, and to the port at Ruwais.

The first line between Habshan and Ruwais will start operating in 2013 with the extension to Shah, about 266 kilometers (165 miles) from the coast, following a year later. More info