Dubai Debt Costs to Rise on $7.1 Billion Expo Spend: Arab Credit - Bloomberg

Dubai Debt Costs to Rise on $7.1 Billion Expo Spend: Arab Credit - Bloomberg:

"Dubai, which roiled markets with its request to delay $25 billion of debt payments in 2009, faces the prospect of rising borrowing costs if it succeeds in a bid to hold the Expo 2020 World Fair, Bank of America Corp. said.
The emirate needs about 26 billion dirhams ($7.1 billion) of infrastructure spending to host the event, HSBC Holdings Plc (HSBA) analyst Patrick Gaffney said by phone. At the same time, Dubai has approximately $42 billion of debt coming due over the next two years, Charlotte, North Carolina-based Bank of America said.
“The possible increase in Dubai’s external borrowing needs if it’s awarded the Expo 2020 could put pressure on the emirate’s borrowing costs given the crowded maturity schedule across Dubai Inc.,” Jean-Michel Saliba, an economist at the U.S. lender in London, said yesterday in e-mailed comments.
Dubai’s credit risk has fallen in the past year amid a series of successful debt restructurings, while those of its regional peers increased. The yield on the emirate’s $750 million 7.75 percent bonds maturing in October 2020 fell 80 basis points last month to 4.58 percent yesterday."

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