Sunday 5 April 2009

Dubai raises $635m to refinance debt

The Dubai government raised a $635m Islamic loan on Sunday to help retire $1bn in civil aviation authority debt maturing later this month.

The loan should help assuage international investor concerns about the Gulf commercial hub’s ability to attract bank funding as it looks to refinance around $15bn this year, part of the emirate’s $75bn-$80bn debt pile.

The government is seeking to refinance as much of its debt as possible and then to pay off the remainder from internal resources, which have been boosted by a $10bn loan from the United Arab Emirates central bank.

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