Dubai World creditors agree to debt deal

20 May 2010

Dubai World said today it has agreed in principle with a group of creditor banks on terms to restructure $14.4bn of loans. The company will pay $4.4bn in five years and the remaining $10bn in eight years. Banks will have the option to choose from combinations of loan maturities in dollar or dirhams that carry different interest rates, according to Bloomberg. Banks will be paid 1% interest on $4.4bn of the loans maturing in five years. The lenders have three options in the eight-year maturities covering about $10bn of debt with at least 1% interest and varying additional rates between 1.5% and 2.5% at maturity.

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