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Wed 31 Mar 2010 11:03 AM

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Dubai’s Limitless to get extension on $1.2bn loan

Lenders to negotiate new terms for loan that may be rolled over after extension period.

Dubai’s Limitless to get extension on $1.2bn loan
(ITP Images)

Limitless, a property unit of Dubai World, received a 90-day extension from banks to repay a $1.2 billion loan maturing today, a banker familiar with the matter said. Lenders will continue to negotiate new terms for the loan that may be rolled over after the extension period, said the banker, who didn’t want to be identified because the discussions are private.

Limitless raised the Islamic loan in dollars and United Arab Emirates dirhams in 2008 from a group of 18 banks, according to the company statement at that time. Emirates NBD PJSC, Arab National Bank and National Bank of Abu Dhabi PJSC helped Limitless raise the loan, while Royal Bank of Scotland Group Plc, RHB Investment Bank Bhd. and United Bank Ltd. were among lenders.

A spokesman for Dubai World declined to comment when contacted today. A spokeswoman for Limitless had no immediate comment.

State-owned Dubai World, which is restructuring $24.8 billion of debt, said last week it is holding separate talks with the creditors of Limitless. Dubai World asked creditors on March 25 to roll over its outstanding debt into two new loans of five-year and eight-year maturities.

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