State-owned conglomerate Dubai World, the firm at the heart of the emirate’s debt crisis, is considering refinancing a further $850m, it emerged Thursday.
Dubai World, which includes DP World, Nakheel and Drydocks World among its units, signed a final agreement with its 80 creditors to restructure $26bn of debt in April.
The move by the group’s subsidiary, Port & Free Zone World (P&FZ), is revealed in a prospectus produced by DP World, which is due to list its shares on the London Stock Exchange next week, said the UK’s Guardian newspaper.
“[DP World] understands that Port & Free Zone World FZE is considering refinancing its outstanding net debt facilities of approximately $850m, secured in part against certain of its shares in the company, in the short to medium term,” the document said.
“Options to refinance the facilities include, inter alia, further bank loans, asset disposals, public market bond issues (including equity-linked bonds) or the sale of shares in the company.”
The news follows a day after DP World announced it would begin trading its shares on the London Stock Exchange on June 1. The firm believes that a duel listing between the London Stock Exchange and Nasdaq Dubai will help to boost interest in the firm.
Dubai World, one of the emirate’s three main state-owned holding companies, in April said its creditors will $4.4bn in five years while the second tranche will involve $10.3bn over eight years at a fixed interest rate of 2.4 percent.
Dubai World said in July it was prepared to sell prized assets including previously ringfenced ports firm DP World in a bid to raise cash.
Sheikh Ahmed Bin Saeed Al Maktoum, the company’s chairman, said in May that the firm can’t afford to default on its debt and is able to meet its credit obligations.
“Whatever [commitment] we have at the end of the day, we are committed to do it, and we will do it,” he said.
“I don't think we can afford today, if we have anything, to default on it. It is a matter of credibility and I’m sure we will be able to demonstrate this in the coming years.”