Dubai Islamic settles $1bn Tamweel liabilities
Dubai, September 19, 2013
Dubai Islamic Bank has settled 4 billion dirhams ($1.09 billion) of liabilities from mortgage subsidiary Tamweel two years ahead of their maturity, the bank said on Thursday.
This amounts to all of Dubai Islamic's bilateral liabailities relating to Tamweel, a bank statement said.
The bank settled the liabilities early because it has "robust capitalisation and ample liquidity", it said.
They were part of a five-year moratorium Tamweel agreed with creditors in 2010 and were due to mature in October 2015.
Dubai Islamic upped its stake in Tamweel to nearly 90 per cent following a tender offer earlier this year to acquire the Islamic mortgage provider's outstanding shares.
Tamweel's operations are now fully merged with those of its parent firm. - Reuters