Dubai International Capital completes $550m refinancing deal

12 January 2010

Loan extends debt for additional three years

Dubai International Capital, the investment arm of state-owned Dubai Holding, has successfully completed a $550m refinancing, according to bankers close to the deal.

The deal was completed in mid December but is only now coming to light.

The deal pays banks 400 basis points above the London interbank offered rate (Libor) and has a tenor of two years, although this can be extended to three years. If the loan tenor is extended, the pricing will increase by 100 basis points at the end of the second year.

A banker who worked on the deal says that around 10 banks were involved in the financing group, including some banks that had not been involved in providing the original facility in 2007.

“Investors took comfort from the repayment guaranteed offered by Dubai Holding,” he adds.

The deal was arranged by UAE’s Mashreqbank and Noor Islamic Bank, along with the UK’s Standard Chartered Bank and Royal Bank of Scotland.

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