The chairman of Borse Dubai has said he is confident that the state-owned firm will be able to fully repay its $2.5bn debt due in February 2011.
“We feel confident about meeting the refinancing requirements,” says Essa Kazim, chairman of Borse Dubai and managing director and chief exective of Dubai Financial Market (DFM). “There is no issue.”
The deal was due to mature in February 2010, but Borse Dubai took advantage of an option to extend the loan by one year.
Kazim did not comment on how the repayment would be financed, or whether the company would be selling any assets, but said: “We have assets that are valued much higher than the amount that is required for refinancing.”
“At current market value, our portfolio of London Stock Exchange (LSE), Nasdaq Dubai, Nasdaq OMX and DFM assets are worth around $6bn against a loan that is only $2.5bn,” he adds.
Borse Dubai owns an 80 per cent stake in DFM, a 33 per cent stake in Nasdaq Dubai, a 28 per cent stake in the LSE and a 19.99 per cent stake in Nasdaq OMX.
On 11 November, Dubai Group, a unit of conglomerate Dubai Holding, announced it is setting up a committee of banks to discuss its debt commitments.
Dubai Group has a $1.5bn murabaha facility due in August 2011 in which 25 banks have participated.