Sources say Investment Corp of Dubai is seeking loan to refinance existing debt
Investment Corporation of Dubai is seeking to raise a $1 billion loan to refinance existing debt, according to two people with knowledge of the plan.
The emirate’s main state-owned holding company is talking to banks to raise a five-year loan to partly repay a $2.55 billion facility that matures in June, said the people, asking not to be identified because the information is private. ICD will use its own cash to repay the rest of the loan, they said.
ICD owns stakes in some of Dubai’s biggest companies including Emirates, the world’s biggest carrier by international passengers, Emaar Properties, the developer of the world’s tallest skyscraper and Emirates NBD, the emirate’s biggest lender. ICD declined to comment.
The company raised the loan in 2013, and it includes a $875 million facility and a 6.15 billion dirham ($1.7 billion) portion, both of which have conventional and Islamic tranches, according to data compiled by Bloomberg. The loan was priced at a spread of 215 basis points over benchmark rates.
HSBC Holdings, Citigroup, Standard Chartered, Emirates NBD and Dubai Islamic Bank were among lenders that provided the original loan.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.