Dubai International Capital (DIC), a unit of Dubai Holding, has agreed with lenders the terms of a restructuring of $2.5bn of debts.

The final agreement will involve $2.15bn of debt extended for five years, with a coupon payment of 2 per cent, and $350m of debt extended for three years.

A coordinating committee of lenders, including the UK’s HSBC, Royal Bank of Scotland, and the local Emirates NBD and Mashreqbank have been representing the banks during the talks. “This debt restructuring represents another step in Dubai’s continued march in the right direction,” said Rick Pudner, chief executive officer of Emirates NBD.

Dubai firms have been going through a flurry of activity recently as they try to finalise debt negotiations. Drydocks World, part of Dubai World, has filed a legal action that will enable it to force through a $2.2bn debt restructuring despite some creditors not agreeing to the proposal. Jebel Ali Free Zone is also attempting to refinance a $2bn sukuk (Islamic bond) due in November, as is DIFC Investments.