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Wed 23 Mar 2011 01:48 PM

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Dubai World signs final deal on $24.9bn debt

Debt restructuring will see creditors paid over eight years, interest rate fixed at 2.4%

Dubai World signs final deal on $24.9bn debt
State-owned conglomerate Dubai World has signed a final agreement with its 80 creditors to restructure $24.9bn in debt

State-owned conglomerate Dubai World has signed a final agreement with its 80 creditors to restructure $24.9bn in debt, the company said in a statement on Wednesday.

Under the terms of the two-tranche debt repayment plan, creditors will receive $4.4bn in five years while the second tranche will involve $10.3bn over eight years at a fixed interest rate of 2.4 percent.

"Dubai World today signed a final agreement on restructuring all of its financial obligations with all its debtors, who number 80," the company said in a statement carried by the UAE state-owned news agency WAM.

Dubai World sent global markets reeling in 2009 when it said it was unable to meet its debt obligations.

Dubai World said in July it is prepared to sell prized assets including previously ringfenced ports firm DP World in a bid to raise as much as $19.4bn to repay creditors.

The repayment of the initial $4.4bn, five-year debt tranche would be financed by its Istithmar World portfolio and its Infinity investment - two segments that were ringfenced from the conglomerate's debt proposal agreed by a core group of bankers in May.

State-owned Dubai World won support from all its creditors in November for the restructuring plan, one of the first major milestones in resolving the debt headache which has plagued the Gulf Arab emirate since 2009.

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suleyman 8 years ago

Hilarious. The DW spokesman doesn't even know the difference between debtors and creditors. Heaven help them.

neil flanagan 8 years ago

please come to manchester uk

Jebel Ali Baba 8 years ago

Please can someone lend me 1 billion in any currency for 2.4 percent a year? I will make a fortune with this money while other "big players" are just managing their downturn.