The Abu Dhabi-based company may seek between $2-$3 billion in loans and the funds will be used to lay more than 600 km of track from Ghuweifat, at the Saudi border to Fujairah on the UAE east coast.
Sunday 07, July 2019
Etihad Rail is seeking a financial adviser to raise as much as $3 billion to build the second stage of a rail network in the UAE, reported Bloomberg.
The UAE’s Ministry of Finance and Abu Dhabi’s Department of Finance are also helping finance the second stage of the project.
The AED 40 billion ($11 billion) Etihad Rail network, which will provide both freight and passenger services when complete, will eventually link the six Persian Gulf nations from Saudi Arabia to the UAE and Oman.
The first stage of the project spanning 264 km was completed in 2015 and it is used to transport sulphur from the southwest of Abu Dhabi to the export point at Ruwais.
Etihad Rail last month awarded two construction and track-work contracts worth AED 4.4 billion for 310 km.
The company raised a $1.28 billion, five-year loan in 2013 from a syndicate of banks, including HSBC, for the first stage.