State-backed company reassures stock exchange over listed bonds
Dubai Holding has stated that it has no “price-sensitive” information to declare about either an upcoming restructuring or its ability to repay its bonds listed on the Nasdaq Dubai.
The statement was made in response to a request for information from the Nasdaq Dubai.
In the wake of the 25 November announcement that the Dubai government will restructure Dubai World, Nasdaq Dubai asked the issuers of all bonds listed on the exchange to declare if there is any price-sensitive information relating to their debt.
Such information could include a planned restructuring or difficulties in repaying bonds.
The Dubai Holding statement covers a $500m bond due in 2012, a €750m ($1bn) bond due in 2014, and a £500m ($811m) bond due in 2017.
Analysts in the region say that Dubai Holding may also need to restructure its debts following Dubai World’s announcement that it would seek a six-month debt standstill.
Also on 15 December, Deutsche Bank announced that the Dubai government had made the required repayments on the $3.5bn sukuk (Islamic bond) of government-backed real estate developer Nakheel, which matured on 14 December.
Investors in the Nakheel sukuk should be repaid within days, allowing the developer to avoid a default.