Dubai World Gets $6.2 Billion Government Loans Over 12 Months
The Dubai government said it lent Dubai World, the state-owned investment company that’s in talks to reschedule about $22 billion of debt, more than $6.2 billion in the past 12 months.
“The money is in the form of a loan, on commercial terms, and the Dubai Support Fund hasn’t taken an equity stake in the company or taken any assets from the group,” a government spokeswoman said by phone, declining to be identified, in line with government policy. The Abu-Dhabi-based National newspaper reported the figure yesterday.
Dubai World failed to present a restructuring offer to lenders in December and declined to say when a deal could be struck. Six months may be enough time to reach an agreement, Henry Azzam, Deutsche Bank AG’s regional chief executive officer, said this week at the opening of the bank’s Abu Dhabi branch. Debt restructuring by Dubai state-run companies may reach $46.7 billion, Morgan Stanley said in a Dec. 8 report.
There’s $4.9 billion left in the Dubai Support Fund, set up last year to support the emirate’s state-owned companies, which may be available to Dubai World if it reaches a standstill agreement with creditors, the spokeswoman said.
Dubai stocks and bonds tumbled in November after the government said Dubai World would seek to delay payments to creditors until at least May 30. The United Arab Emirates’ central bank bought $10 billion in Dubai government bonds last year and the emirate received a further $10 billion from the Abu Dhabi government and two Abu-Dhabi based banks.
Istithmar World PJSC, a unit of Dubai World, sold its 13 percent stake in SpiceJet Ltd. to mutual funds, Ajay Singh, a director at the Indian budget carrier, said yesterday.