Dubai Holding unit to repay $1 billion bond
Dubai, October 30, 2013
The flagship company in the ruler of Dubai's personal business empire, Dubai Holding, will repay a 750 million euro ($1.04 billion) bond maturing in January 2014 from available funds, Dubai Holding said in a statement on Wednesday.
Following the repayment, the unit, Dubai Holding Commercial Operations Group (DHCOG), will only have one bond outstanding, a 500 million pound ($805 million) issue maturing in 2017, the statement issued to Nasdaq Dubai said.
DHCOG was hit hard by Dubai's property market crash and corporate debt troubles of 2008-2010, but the local economy has been recovering since then and the company's 2012 profit surged to 1.2 billion dirhams ($327 million) from 204 million dirhams in 2011.
It incorporates hotels group Jumeirah, business park TECOM Investments and Emirates International Telecommunications aside from a real estate division, Dubai Properties Group.
Jumeirah Group raises $1.4 billion loan
Meanwhile, a key asset of Dubai Holding, luxury hotel company Jumeirah Group, has raised a $1.4 billion unsecured syndicated loan due in 2019 to help fund its expansion, the company said on Wednesday.
The loan was priced at 2.75 percent above the London Interbank Offered Rate and lead-arranged by Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD, HSBC, Mashreq and Standard Chartered. Jumeirah was advised on the deal by Rothschild.
One of the key assets of Dubai Holding, a conglomerate owned by the emirate's ruler, Jumeirah will also use part of the loan for the general corporate purposes of the Dubai Holding Commercial Operations Group, it said. – Reuters