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) [2]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 [3] meant that the ICD [4]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.
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[1] http://www.syndigate.info
[2] http://www.icd.gov.ae/
[3] http://www.albawaba.com/how-fragile-dubais-economy-406976
[4] http://www.albawaba.com/news/investment-corporation-dubai-joins
[5] http://www.cpifinancial.net