Dubai Holding reaches agreement with lenders

Dubai: Dubai Holding announced on Thursday that its private equity arm Dubai International Capital (DIC) has reached final agreements with lenders in restructuring of around $2.5 billion of debt.

The agreement provides lenders 2 per cent in interest on $2.15bn of liabilities over the next five years, while a further $350m will be extended for three years at an “unchanged contractual rate of interest”.

“This agreement is an important landmark for Dubai Holding. The restructuring puts DIC on a sound financial footing,” said Ahmad Bin Byat, chief executive, Dubai Holding.

David Smoot, the chief executive of DIC, added that the company had “made a number of profitable exits in recent months”, although he stressed that DIC was under no pressure to sell assets.

“Despite the challenging macroeconomic environment, the portfolio is well-positioned to navigate current markets with less leverage, better liquidity and long-term financing, reflecting significant future value potential,” Smoot said in a statement.