Dubai Sukuk Gets $14.6 Billion Push Toward Record Rally - Bloomberg

Dubai Sukuk Gets $14.6 Billion Push Toward Record Rally - Bloomberg:



"Dubai bondholders are getting a $14.6 billion reason to drive the sheikhdom’s securities to fresh records.



Yields on the emirate’s dollar sukuk due in May 2022 fell eight basis points yesterday to 3.43 percent, within five points of a record low, as Dubai World reached a deal with a majority of creditors to reorganize about $14.6 billion of debt. As part of the agreement, the company will repay $2.92 billion due this year early, and extend obligations maturing in 2018 to 2022.



The restructuring marks further progress for Dubai in putting the 2009 financial crisis behind it as the United Arab Emirates’ sheikhdom benefits from a recovery in real estate and tourism. At the same time, it still owes more than $135 billion to creditors, according to International Monetary Fund estimates."



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