Dubai state companies are securing bank financing as the latest tumult in global markets fails to derail the emirate’s recovery from the 2009 debt crisis.
Dubai Holding LLC, one of the three main state-owned holding companies, reached an accord with lenders to extend a $1.16 billion loan to December 2016, according to a company official. Port & Free Zone World FZE, an intermediate holding company for port operator DP World Ltd., is raising $850 million to refinance debt, three bankers familiar with the plan said. Investment Corporation of Dubai said on Aug. 8 it will repay $4 billion of loans when they mature on Aug. 21.
“Banks are continuing to extend financing to Dubai Inc. because of its improving economy and debt profile,” Gus Chehayeb, a Dubai-based associate director at investment bank Exotix Ltd. said by e-mail yesterday. There is “encouraging evidence with regards to its willingness to repay debt, sell assets, and stay current on its interest payments,” he said.