Dubai World announced today the repayment of the final tranche of debt to its original creditors, completing the refinancing program that commenced in 2010.
The repayment of the final outstanding sum amounting to $8.2 billion on the 30th June, marks the fulfillment of Dubai World's obligation to its original creditors, well before the final maturity date of the debt facility on 30th September 2022, said a statement.
Since 2011, Dubai World has repaid a total sum of $18.9 billion. This comprises a principal repayment of $16.9 billion to the original lenders, including capitalised PIK interest, in addition to $2 billion of cash interest.
The repayment of the entire loan amount was achieved through: funds received from portfolio companies, including $6 billion from Port and Free Zone World; asset sales, including the sale of Economic Zones World for $2.7 billion; dividend payments from portfolio companies, including a $1.6 billion dividend from Infinity World; and a new $3 billion loan from Dubai Islamic Bank.
Speaking on behalf of the board, Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Dubai World, commented: "The full repayment represents an important milestone for both Dubai World and for Dubai. Throughout the last 10 years, Dubai World has met its obligations in full and well ahead of schedule. We invariably acted transparently, and remained committed, at all times, to the course of action agreed with all parties involved."
"Looking ahead," Sheikh Ahmed continued, "Dubai World will focus on streamlining and strengthening its efforts to deliver long-term value for all stakeholders."
"Once more," he continued, "our action underscores Dubai's commitment to always meet its obligations." - TradeArabia News Service