The Dubai government on Thursday committed to assist the struggling conglomerate Dubai World with $9.5 billion as part of ongoing negotiations to restructure $22 billion in debt.
The government will significantly support the conglomerate’s proposal for debt restructuring, according to a statement from the head of the emirate’s Supreme Fiscal Committee, šeikh Ahmed bin Saeed al-Maktoum. This includes securing an amount of up to $9.5 billion for new financing during the proposed business plan period, he added. The statement also noted that the proposal will be presented to creditors during the day.
Dubai World announced on Thursday that it has proposed full repayment of debt to creditors through the issuance of two tranches of new bonds with maturities of five and eight years. Unrelated to the government fund for financial support, which financially assists the struggling group, the conglomerate will fully repay the principal to creditors through the issuance of two tranches of new bonds maturing in five and eight years, the statement said. (H)
