Dubai debt deal ‘removes hurdle for investors’
Dubai, May 24, 2010
Dubai's recent debt deal for its flagship conglomerate, Dubai World, removes a key hurdle for international investors eyeing investments in the region, a Deutsche Bank executive said on Monday.
'It (the Dubai World debt deal) removes a major question mark for international investors,' Ivor Dunbar, co-head of global capital markets at Deutsche Bank, told reporters on the sidelines of an economic conference.
Dubai World, the state-owned conglomerate, reached a deal to restructure $23.5 billion in debt with its core lenders last week, addressing the most immediate of a string of problems facing investors in Dubai.
In addition, Dunbar said he wasn't 'unduly worried' about Dubai Holding, one of three government conglomerates which is considered to be sitting on a considerable debt pile and may require restructuring.
'Every major company has to go through this,' Dunbar said.
Three companies within Dubai Holding had engaged advisers ahead of a potential plan to restructure billions in debt, the Financial Times reported earlier this month.
The Deutsche Bank executive added the Dubai World debt deal, in particular the longer maturities, 'will erode some capital (of the local banks) but that should already be provisioned for.' – Reuters