Three-year old debt clouds hanging over Dubai dispersed this week as two of the most challenging bond maturities at its government-related entities were tackled, increasing confidence in the market and sparking renewed buying in the emirate's secondary credit.
DIFC Investments, the company that runs Dubai's iconic international financial centre, repaid in full a USD1.25bn sukuk which matured on June 13, using funds raised through a partially government-guaranteed Islamic loan and a programme of asset sales.
Its repayment followed Jebel Ali Free Zone, which owns and operates a strategically vital trading hub, going a long way towards refinancing a USD2.04bn-equivalent dirham sukuk due in November by issuing a highly successful new USD650m, seven-year sukuk on Tuesday 12. The bond is part of a package, including a USD1.2bn loan that is already in place, to help cover the redemption.
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