Five Holdings lines up fresh credit for int’l expansion: A syndicate of banks that includes the Commercial Bank of Dubai, Arab African International Bank, and Spain-based Santander are handing Dubai-based luxury hospitality and entertainment group Five Holdings a USD 460 mn revolving credit facility, Zawya reports. The fresh financing is earmarked for expansion and debt management.

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SOUND SMART- A revolving credit facility is a flexible loan that lets a company borrow, repay, and reborrow up to an agreed limit — similar to a corporate credit card. Firms typically use it for working capital, short-term liquidity, or to bridge investments.

The facility will support a planned USD 500 mn investment over the next two years to grow Five’s portfolio in the US, Asia and the UAE, while also strengthening its footprint in Dubai and Ibiza, where it already owns flagship nightlife and hotel assets alongside three Five hotel properties. The facility will also allow the group to refinance obligations early, including its maiden USD 350 mn Nasdaq-listed green bond issued in 2023.

REMEMBER- Five’s latest credit line comes after a string of debt-funded acquisitions in Spain, including its AED 210 mn (EUR 52.57 mn) purchase of Chioro last year, which handed it El Hotel Pacha in Ibiza and land slated for a residential project — both of which were financed through a mix of equity, deferred payments and an external loan. The firm also acquired the Pacha Group for AED 1.2 bn in 2023 through green bond and a previous revolving credit facility.

ALSO- The hospitality group is teeing up a Dubai IPO: Five Holdings reportedly tapped Citi and Deutsche Bank to work on its planned IPO on the DFM this year. The firm was also said to be mulling a potential dual listing, though the exact timing and size of the IPO were not disclosed.

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