Dubai Holding unit extends $1.2bn loan
Dubai, September 10, 2013
Dubai Holding's investment unit has extended the repayment of a $1.2 billion loan until 2020, following moves by other state-linked firms, who have promised full repayment of debt by extending maturities.
The loan is related to Dubai Holding Investment Group's (DHIG) acquisition of a 9.9 per cent stake in US hedge fund Och-Ziff Capital in 2007, according to a banker familiar with the deal. DHIG bought the stake for $1.25 billion.
Dubai was rocked by a property crisis in 2009 but an economic recovery in the emirate is helping state-owned firms buy more time on their debt maturities. Another conglomerate, Dubai World, agreed to restructure $25 billion in debt in 2011.
A spokesman said the loan has been extended to 2020 at the original rate of interest.
The acquisition, like many of Dubai's overseas forays during the boom years, was largely funded by debt.
Dubai Holding, the investment arm of Sheikh Mohammed bin Rashid al-Maktoum, has a portfolio focused on hospitality, real estate, telecommunications and other services.
Its financial arm, Dubai Group, is restructuring $10 billion of debt. It has been selling assets, including stakes in Malaysia's Bank Islam to BIMB Holdings Bhd in August.-Reuters