RLPC-Dubai World unit seeks $1.25 bln loan - bankers

LONDON, July 28 (Reuters) - A subsidiary of state-owned investment group Dubai World has launched syndication of a secured $1.25 billion, three-year term loan, banking sources said on Monday.

The loan will refinance a bridge loan used to back the borrower's purchase of property developer Gazeley Limited from Wal-Mart (WMT.N: Quote, Profile, Research), the sources said.

The borrower is Port & Free Zone World, a holding company in the transport and logistics sector with over $22 billion of total assets. In July its subsidiary Economic Zones World (EZW) acquired Gazeley via a bridge loan made to Port & Free Zone World.

Bookrunners Citi and Deutsche Bank are arranging the loan, which will also be used to fund capital expenditure at EZW, or for further acquisitions.

The loan pays a margin of 175 basis points (bps) over LIBOR and banks are invited to commit $100 million for an upfront fee of 80 bps, $50 million for 65 bps, or $25 million for 50 bps.

Lenders can commit in U.S. dollars or in U.A.E. dirhams. Syndication is scheduled to close on August 19 with signing on August 26.

Bank meetings are being held in London on Monday and in Dubai on Tuesday.

A source familiar with the matter told Reuters in June that the Dubai government investment firm had paid between 300 million and 400 million pounds ($794.9 million) for Gazeley.

Dubai World Chairman Sultan Ahmed Bin Sulayem said in a statement at the time the acquisition was a milestone in the global expansion plans of its subsidiary EZW, which operates the 48 square kilometre (18.53 sq mile) Jebel Ali Free Zone in Dubai.