Borse Dubai Faces $2.5B Bank Loan Maturing By Feb 19-Sources

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Government-owned Borse Dubai has to pay back, or refinance a $2.5 billion loan due next month, marking the next major test of the emirate's ability to pay its debts, according to people familiar with the matter.

"Dubai still needs to cough up cash for these loans and the market is increasingly getting nervous as the repayment date draws near and the government maintains its usual silence," a banker familiar with the loan, who declined to be identified, told Zawya Dow Jones.

Borse Dubai executives couldn't be reached for a comment. Spokespersons for Nasdaq Dubai and The Dubai Financial Market couldn't comment immediately on the matter.

The company, which encompasses the government's shares in Nasdaq Dubai and the Dubai Financial Market Co. (DFM.DFM), on Feb. 19 last year said it raised a $2.5 billion one-year multi-currency syndicated facility.

The facility, which carries a one-year extension option at the discretion of Borse Dubai, has a conventional and Islamic tranche, and pays 325 basis points per year over the London interbank offered rate.

The company said that at the time of syndication participating banks included India's Bank of Baroda (532134.BY), Dubai Islamic Bank PJSC (DIB.DFM), Emirates Bank International PJSC, HSBC Holding PLC (HBC), National Bank of Abu Dhabi PJSC (NBAD.AD), Skandinaviska Enskilda Banken AB, The Bank of Tokyo-Mitsubishi UFJ Ltd. and Union National Bank.