The refinancing of a $2.2bn loan by state-owned Dubai Electricity and Water Authority (DEWA) will be completed by April, despite the current economic downturn, a government official has said.
Nasser bin Hassan Al Shaikh, director general of the Dubai government’s Department of Finance said the state-owned utility was “negotiating its loan, and my feedback is that they are pretty comfortable”, according to news agency Bloomberg.
The refinancing of a $1bn loan to Dubai’s Department of Civil Aviation that also matures in April has also resulted in “positive” discussions with bans, he said.
Al Shaikh added that the government could also help state-owned companies repay debts if necessary.
As a result of credit freezes in the past four months some of Dubai’s biggest companies have used their own cash to refinance maturing debt.
In February Borse Dubai Ltd., the owner of the emirate’s two stock exchanges, became the first government-owned company to raise a syndicated loan this year.
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