Sources in BCC1 tell me that Blue City’s Al Madina A’Zarqa project has just been given assurances of 100% underwriting on the credit lines needed to complete the project by Bank of New York,
the appointed representative (Trustees) of the original Bond Holders. This is of course in some part because the bond holders are in pretty deep already, at ~40% of the investment cost sunk. So going ahead is the only chance of getting any money back.
There are also proposals to scale some of the project scope down, especially those communal bits they can't they can't sell like the Golf Course, and slowing down the development, but you're still talking a huge investment effort over the next few years.
I wonder if the money is - indirectly - effectively coming from the US Government's good ol' American taxpayers, at low rates of interest too, via the massive bail-outs over there? Wouldn't that be ironic headline for an incisive 'ViewPoint' piece for the Times of Oman - "Here comes the Cavalry!! Blue City project on track thanks to the Americans"...
Even better, it means the loans won't appear on the Government's books, and there will be some continued fiscal stimulus. Plus it will unlock significant Government spending on infrastructure.
Meanwhile, the boys at Blue City are being rewarded for hiring the big executive guns (mainly... American) at vast expense, and the party can continue for the management and the shareholders.
