Refinancing talks on Dubai sovereign wealth fund
Talks are at an early stage and more detail is expected to emerge in the coming weeks about how the Investment Corporation of Dubai (ICD) plans to handle the loan's maturity, reports Reuters, citing unnamed banking sources.
The loan is the second tranche of a $6 billion facility that the ICD raised in September 2008. Unfavourable market conditions meant that the ICD did not take up a refinancing package for the previous $4 billion, opting instead to repay the full amount, but bankers believe that improved sentiment towards Dubai as a borrower will make the pricing more attractive and a new loan more likely this time, reports the news wire.
"The market is there for them if they want to refinance," a Dubai-based banker is quoted as saying. "They didn't do it last time because the pricing benchmark would have been too high – but it's better now."
The loan is the second tranche of a $6 billion facility that the ICD raised in September 2008. The first $4 billion was repaid in 2011.
- As American decade of easy money ends, Gulf currencies brace themselves for a 'nervous breakdown'
- More money to be taken care of: private wealth growth in the GCC exposes need for prudence
- With $100 billion in foreign reserves: is Libya's central bank monopolizing the country's economic potential?
- After 23 years in office,why was the UAE's central bank governor replaced?
- Why Turkey's 'tense' relations with rating agencies is damaging