State-backed real estate firm secures fourth extension on loan, banking sources say
Limitless received a fourth extension on a $1.2bn loan as
the real-estate developer controlled by state-owned Dubai World works on a
restructuring plan, two bankers familiar with the plan said.
The Islamic syndicated loan has been extended until July 31
from March 31 without a change in the terms, the bankers said, declining to be
identified because the information is private.
The time will allow Limitless to complete a debt
restructuring agreement with creditor banks, one of the bankers said.
“Private discussions are continuing with our lenders,”
Limitless said in an emailed response to questions.
The loan, originally maturing in March last year, got two
three-month and one six-month extensions until March this year.
Limitless, whose projects include a mixed-use development in
Dubai’s Downtown Jebel Ali and another mix-used development in Riyadh, Saudi
Arabia, raised the syndicated loan in dollars and United Arab Emirates dirhams
in 2008 from a group of 18 banks, according to a company statement at that
Emirates NBD, Arab National Bank and National Bank of Abu
Dhabi helped raise the loan, while Royal Bank of Scotland Group and RHB
Investment Bank were among the lenders.
Dubai World signed a final deal with creditors in March on altering
the terms of about $25bn of debt, marking the end of a loan restructuring that
roiled global markets in 2009.
Dubai’s property prices slumped, losing more than half their
value from a peak in 2008 after the global financial crisis, forcing some
companies in the emirate to delay repayments.