The government-owned conglomerate Dubai World is seeking to raise a $1.2bn syndicated loan with three banks.

The facility is being raised via the company’s wholly-owned subsidiary Ports & Free Zone World, a source confirms to MEED.

The banks arranging the facility are HSBC, Emirates NBD and Citigroup.

The loan could be used to potentially partially repay debt falling due in 2015.

Dubai World is in the process of finalising a second restructuring of its $14.5bn-worth of debt that it initially stalled on in 2009.

Creditors are preparing for the next tribunal hearing for the restructuring of the $14.5bn-worth of debt owed by the Dubai conglomerate Dubai World, which is scheduled for 15 February.

In January, 73 per cent of Dubai World’s creditors agreed to a new debt restructuring, which would involve the early repayment of $2.9bn due this September, and the extension of the $10bn due in September 2018 to 2022.

Creditors are expecting to vote on the new proposal on 17 March at the Dubai World Tribunal and the restructuring process could be concluded by May.

Dubai World has already taken steps to ensure it can meet its repayment obligations by selling off assets. In 2014, it sold its Jebel Ali Freezone (Jafza) to its subsidiary DP World in a $2.6bn deal.

The acquisition will include DP World taking on $859m-worth of Jafza’s outstanding debt which was expected to ease the pressure on Dubai World’s balance sheet.

The Dubai World Tribunal was set up in 2009 after the conglomerate stalled on its debt repayments to banks at the height of the global financial crisis and the collapse of Dubai’s property market.