Published: May 9, 2013
Group drafts terms to restructure US$6bn of bank debt.
Dubai Group, the investment vehicle owned by the ruler of the emirate, has finalised terms to restructure US$6bn of bank debt. Lenders still have to give the go-ahead but have been “fully informed” of the terms, the group said in an emailed statement picked up by Bloomberg. Creditors will extend their loans for up to 12 years, giving more time for assets to recover and find buyers.
This is the latest step in a long process of recovery from the economic crash of 2009, which caused Dubai to seek a US$20bn bailout from its neighbour Abu Dhabi. This week Dubai’s credit risk reached its lowest level since before the crisis, on the back of US$898bn of successful interest payments made by the emirate in April.