Dubai's Limitless to sign $1.2bn debt deal in Sept

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Nakheel chairman Ali Rashid Lootah.

Nakheel chairman Ali Rashid Lootah.

Limitless, the indebted property arm of Dubai World, is aiming to conclude its $1.2 billion debt deal with creditors by the end of September, the company said on Tuesday.

The state-owned firm, which was hard hit by the global financial crisis, has rolled over the Islamic debt facility, owed to a syndicate of banks, several times. The loan was originally due to mature in March 2010.

"Discussions continue and we aim to conclude the deal by the end of September," Limitless said in an emailed statement.

The company was close to reaching a debt deal with creditors, sources told Reuters in July.

The developer has proposed paying interest of 175 basis points over the London interbank offered rate (LIBOR) under the new terms, one banking source had said at the time.

Limitless, which once attempted to build a 75-kilometre inland waterway called the Arabian Canal, was not part of Dubai World's $24.9 billion restructuring unveiled in March last year.

Conglomerate Dubai World transferred ownership of the firm to the government last year along with developer Nakheel .

Dubai's property firms are gradually recovering from a slump that saw real estate prices and rents drop by over 60 percent from its peak in 2008.

Limitless' projects include a mixed use facility at Dubai's Downtown Jebel Ali and a developments in Saudi Arabia, Moscow and Vietnam.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Should the Gulf introduce VAT?

Should the Gulf introduce VAT?

The GCC’s plans to bring in value-added tax were withdrawn as...

5
Why are some of the world's biggest banks leaving the UAE?

Why are some of the world's biggest banks leaving the UAE?

Large Western banks have been selling off their local assets...

2
How Gulf banks are helping to underwrite region's aviation boom

How Gulf banks are helping to underwrite region's aviation boom

Figures from Airbus show that 47% of MidEast aircraft deals in...

2
Most Popular
Most Discussed