Dubai Holding Commercial reaches refinancing agreement

Revolving-credit facility of $555m to be converted into a five-year term loan
Dubai Holding Commercial reaches refinancing agreement
Dubai government has injected $2bn into Dubai Holding over the last 12 months to support its restructuring
By Bloomberg
Fri 31 Dec 2010 10:15 AM

Dubai Holding Commercial Operations Group, a real-estate and hospitality group owned by the emirate’s ruler, agreed with lenders to convert a $555 million revolving-credit facility into a five-year term loan, according to an e-mailed statement.

Dubai Holding Commercial received a two-month extension in July, the company said at the time, and then got the maturity lengthened again to December 31. Citigroup Inc., Royal Bank of Scotland Group and Standard Chartered arranged the loan.

Some of Dubai’s state-controlled companies are struggling to refinance debt with new loans after credit markets froze amid the economic crisis. The emirate’s investment companies have been hurt by a drop in asset prices across the world, while its real estate companies have been hit by a more than 50 percent drop in property prices.

Dubai Holding and its units owe banks $12bn and have begun talks to roll over some loans, a person with knowledge of the matter said in May. Dubai International Capital, an investment unit of Dubai Holding has a $1.25bn loan due November 30.

The Dubai government has injected $2bn into Dubai Holding over the last 12 months to support its restructuring, Mohammed Ibrahim al Shaibani, director general of Dubai ruler’s court said in November.

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