Cash is king in today’s turbulent markets. So reports that Borse Dubai, Dubai’s stock market operator, has managed to borrow US$2.5 billion (Dh9.18bn), analysts say, may indicate that Dubai Inc may be in a better position than the rumour mill would have had you believe.
Borse Dubai, the state-owned majority owner of Dubai’s two stock markets, has reportedly closed a one-year, $2.5bn syndicated loan this week, just days before it is due to pay back $3.4bn in previous debt. Amid tight international credit markets and lingering concerns about Dubai’s debt load, foreign banks kicked in $1.2bn in loans, according to a Reuters report from London. The remaining $1.3bn came from Dubai’s own banks, the report said.
Equally important, analysts say, is where Borse Dubai appears to be getting the other $900 million it needs to make next week’s debt payment – from its shareholder, the Dubai Government.
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