Etihad Rail, the developer of a $11 billion railway network in the UAE, secured a $1.28 billion five-year project financing from local and international banks to build the first phase of the project, it said on Tuesday.

The UAE railway network comprises three stages, with the first stage underway after a $900 million civil and track works contract was awarded in October 2011.

The phase one will link the western region cities of Habshan and Ruwais by 2013 and connect Shah and Habshan by 2014.

National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, HSBC Holdings and Bank of Tokyo Mitsubishi UFJ arranged the financing, Etihad Rail said in a statement.-Reuters