Company raised $497m to help pay $1.1bn of a $2.45bn term-loan ahead of schedule
Borse Dubai, the company that controls Dubai’s two stock exchanges and has a stake in London Stock Exchange, sold shares in Nasdaq OMX Group Inc to help pay $1.1bn of a $2.45bn term loan ahead of schedule.
The company raised $497m from the sale of 22.78 million shares to Nasdaq OMX and $175m from the sale of eight million Nasdaq OMX shares to Nomura Holdings, the Dubai government’s media office said in an emailed statement on Thursday.
Nomura will sell the shares to Investor AB after receiving regulatory approval.
Borse Dubai also raised $428m from a three-year loan, arranged by Nomura and Emirates NBD, the UAE's biggest bank by assets.
Borse Dubai with the support of its parent Investment Corporation of Dubai, one of the emirate’s three state-owned holding companies, also “reached an understanding” with its lenders to extend the maturity of the remaining $1.35bn facility by a further three years, according to the statement. The $2.45bn loan was to mature in February 2011.
Dubai roiled emerging market stocks last year after saying it would delay repayments on $24.9bn of loans as the emirate’s property market slumped.
The emirate and its state-owned companies ran up about $112bn of debt, according to Barclays estimates, forcing it to restructure some borrowings. Dubai World’s more than 70 creditor banks agreed in October to new debt terms.
“Borse Dubai remains a committed, long-term shareholder of Nasdaq OMX and by entering into these transactions it has been able to achieve its financing objectives while retaining substantial economic interest in Nasdaq OMX,” Mohammed Ibrahim Al Shaibani, Investment Corporation’s chief executive officer, said in the statement. “Borse Dubai remains the single largest shareholder of Nasdaq OMX.”
The Nasdaq OMX said in a separate statement it agreed to repurchase from Borse Dubai about 22.78 million shares for $21.82 a share.
Borse Dubai, formed in 2007, controls Dubai Financial Market and Nasdaq Dubai, and holds about 20 percent of London Stock Exchange.