Dubai Islamic to Raise Tamweel Stake, Offers Debt Plan: Alrroya - BusinessWeek

Dubai Islamic Bank offered creditors of Tamweel, a shariah-compliant mortgage lender, a five-year moratorium on their debt with 4 percent annual return as part of a possible plan to raise its stake in the company, Alrroya Aleqtissadiya newspaper reported today.

The newspaper published a copy of a letter from Dubai Islamic Bank to lenders, in which it sought their official response to the plan before pressing ahead with a possible acquisition of the stake. The newspaper said a plan to merge Tamweel with rival mortgage lender Amlak has been dropped.

The debt plan offers payment of the principle amount in full after the five-year moratorium, the newspaper said.