Thursday 22 October 2009

Dubai investor borrows $550m

Dubai International Capital (DIC) has managed to borrow US$550 million (Dh2.02 billion) from international banks, providing the latest evidence that a growing appetite for risk among global investors may be easing the cash crunch facing Dubai.

Bankers in Dubai and London confirmed that DIC had clinched the roughly two-year loan from a syndicate of lenders. DIC is an investment arm of Dubai Holding, and owns a number of well-known assets abroad, including a majority stake in Travelodge hotel chain of the UK. DIC executives could not be immediately reached to comment on the deal.

At the height of the financial crisis early this year, doubts about Dubai’s ability to service its estimated $85bn in debt led the emirate to seek $10bn in federal funding to support its companies. But low interest rates and signs of a global economic recovery have sparked a rally in financial markets that has revived funding to emerging markets.

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