Debt-for-equity solution seen for DIFC loan
Dubai, August 12, 2010
The Government of Dubai may have to write off its $1 billion loan to Dubai International Financial Centre (DIFC) Investments in exchange for shares, said JPMorgan, the US-based investment bank.
The Government would also have to make investments of up to $600 million in new DIFC capital, it said, according to a report in The National.
A similar process of equitisation and capital injection was among the main proposals in the restructuring of Dubai World, the report said
JPMorgan added that DIFC Investments could raise cash of about $900 million from the sale of non-core assets, the report said.