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Dubai to repay $4 billion loan in full

Dubai, August 8, 2011

Investment Corporation of Dubai (ICD), the emirate's sovereign wealth arm, on Monday said it will repay in full a $4 billion loan maturing on August 21, financing it mainly with dividends from its investments.

ICD had been expected to repay part of the loan and had already agreed with banks to refinance $2.8 billion of the upcoming maturity, in what would have been the largest loan to emerge from Dubai since its 2009 debt crisis.

ICD holds about $70 billion in assets and its portfolio includes Emirates airline and stakes in Dubai's largest bank, Emirates NBD , developer Emaar Properties  and Borse Dubai.

"Today's announcement demonstrates that as part of the government of Dubai, ICD is committed and able to meet its debt obligations," Mohammed Al Shaibani, executive director and chief executive of ICD said in a statement.

The $4 billion is the three-year tranche of a total $6 billion deal signed in 2008. The remaining $2 billion, five-year tranche matures on August 21, 2013.

Less than two years ago, foreign investors turned their backs on Dubai after state-conglomerate Dubai World  announced it would restructure about $25 billion in debt.

The emirate has struggled to rebuild its credibility since, with estimated refinancings of about $30 billion to 2012. – Reuters




Tags: Dubai | loan | Investment Corporation of Dubai | ICD | repayment |

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