Dubai may repay Nakheel's bonds: FT
London, December 17, 2009
Dubai's government may repay outstanding 2010 and 2011 Islamic bonds issued by Nakheel and consider providing further funds to its flagship company, Dubai World, the Financial Times said on Thursday.
The emirate rocked markets on November 25 with a request for a standstill agreement on $26 billion of debt linked to Dubai World and its two main property units, Nakheel and Limitless World.
Earlier this week, Abu Dhabi provided $10 billion to Dubai to meet the debt obligations of Dubai World until the end of April and to stave off a bond default by Nakheel. Abu Dhabi produces 90 per cent of oil exports from the UAE.
Dubai is believed to have pledged to communicate more closely with its neighbour and share more information about Dubai World's restructuring, the newspaper said, without citing sources.
If there were any asset disposals, it said, Abu Dhabi would be granted the right of first refusal.
Two top Dubai officials visited Britain on Wednesday to rebuild investor confidence, a source close to the government told Reuters, and will be going to New York and Washington in coming days to meet with financial and political leaders. – Reuters
More Finance & Capital Market Stories
- Al Baraka summit to discuss financial trends
- Bahrain real GDP grows 3.9pc in 2012
- Deutsche Bank named top FX bank in Mideast
- Doha bourse breaks key 9,000 level
- UAE economic growth hits 4.4pc in 2012
- DFM firms achieve 100pc compliance
- NBK Egypt unit Q1 profit up 15.3pc
- Barclays names key official for Abu Dhabi
- MEPS, Umniah ink MasterCard services deal
- Bahrain insurance market ‘set to grow’