Business | Banking

Noor Islamic sees debt deal for Dubai Group by July

$6b restructuring is in final stages of negotiations

  • Bloomberg
  • Published: 00:00 April 13, 2011
  • Gulf News

Redirecting efforts
  • Image Credit: Oliver Clarke/Gulf News
  • Al Qemzi says an agreement is expected to include loan extensions and full payment of the principal amount.

Dubai: Dubai Group LLC's $6 billion (Dh22.02 billion) debt restructuring is in the final stages of negotiations and an accord is expected to be signed before the end of June, said the chief executive officer of Noor Islamic Bank PJSC.

An agreement is expected to include loan extensions and full payment of the principal amount, Hussain Al Qemzi told reporters in Dubai yesterday.

Noor Islamic is on a committee of banks that is negotiating the deal with Dubai Group.

"I would say the deal is fair," Al Qemzi said. "Some of the banks were not satisfied, and they have taken care of their concerns."

Dubai Group, which is controlled by Dubai Holding LLC, is one of several companies in the emirate seeking to alter terms on borrowings after property prices slumped amid the global financial crisis, limited access to credit markets.

Final deal

Dubai World, the state-owned holding company that's restructuring about $25 billion of debt, signed a final deal with creditors last month, marking the end of a restructuring programme.

In January, Dubai Group appointed eight banks to represent creditors in two committees to bring the restructuring talks to a quicker conclusion.

Paris-based Natixis SA's Nexgen unit and Dubai-based Mashreqbank make up the committee of secured lenders, whose loans are backed by assets.

Royal Bank of Scotland Group and Emirates NBD lead the group of partially secured and unsecured lenders. Other members are Union National Bank, Noor Islamic, Al Hilal Bank and Doha-based Commercial Bank of Qatar.

Profile

Dubai Group invests in the financial-services industry and owns real-estate assets in the US, according to its website.

It holds stakes in firms including Shuaa Capital, the UAE's largest investment bank, and EFG-Hermes Holding, Egypt's biggest publicly traded investment bank.

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