Borse Dubai in talks to refinance $3.78bn loan
London, November 7, 2008
State-run Borse Dubai has resumed talks with banks over a syndicated loan that will refinance the company's $3.78 billion loan agreed in March to back its acquisition of Nordic exchanges group OMX, banking sources close to the situation said.
Discussions began originally in September but were put on ice after the fall of Lehman Brothers sparked turmoil in the loan market. The original financing, which matures on February 28, 2009, is split between a $2.226 billion facility and a 796 million pound facility.
One of the banking sources said that the new loan will total $1.5 to $2 billion "at best" and that the remainder of the funds needed will be raised with equity.
Bankers working on the deal are confident that the original loan will be repaid, despite difficult market conditions. "There will be a new refinancing, or it will be repaid with equity, or a combination of both," one of the bankers said.
Borse Dubai and the Nasdaq Stock Market concluded a $4.9 billion deal in February to buy OMX.-Reuters