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.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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