Dubai gov't repays 3.3 billion dirhams bond on maturity, sending shares to three-year high
Sheikh Mohammed Al Maktoum looks on during Super Saturday at Meydan Racecourse on March 9, 2013 in Dubai, United Arab Emirates.
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Dubai government reaffirmed its commitment to deal with the repayment obligations and said the emirate redeemed Dh3.3 billion bonds due last month on maturity date, according to a statement issued on Sunday by the Dubai media office.
“Upon maturity, all the outstanding notes were redeemed in full by making the required payment through the paying agent to the holders of all outstanding notes, along with accrued interest,” the statement said.
This repayment reaffirms Dubai Government’s commitment to deal with its repayment obligations in a proactive manner,” director-general of the Department of Finance Abdulrahman Saleh Al Saleh said in the statement. “It also strengthens the government’s resolve to honour all its financial obligations on time,” Al Saleh added.
“The Government of Dubai, acting through the Department of Finance, announces that the outstanding Dh3.34 billion of its AED Bonds due in April 2013 across the dual tranches fixed as well as floater notes issued under its Dh15 billion Medium Term Note Programme dated 14 April 2008, reached maturity on 23 April 2013,” the statement said.
Global financial institutions and analysts believe in Dubai’s strong ability to repay all outstanding obligations.
“We expect the important 2013 maturities (ICD, Borse Dubai) to be met, Dubai Group restructuring to end this year and see a chance Dubai makes a modest payment towards its $20 billion Abu Dhabi-related debt in 2014,” Bank of America-Merrill Lynch said in its recent report. Dubai has shown its ability to grow again, with a respectable four per cent pace easing deleveraging, and a perception that the real estate market has bottomed, the report added.
The Dubai government expects the economy is set to expand at an average rate of 4.6 per cent between 2012 and 2015, more than double the average of the previous four years.
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