Dubai: Dubai Holding has announced that Dubai International Capital (DIC), its private equity investment arm, has reached a final agreement with its lenders regarding the restructuring of approximately USD 2.5 billion of liabilities.
Under the terms relating to approximately USD 2.15 billion of liabilities, creditors will extend their debt for five years and receive a 2 percent cash interest coupon on the restructured facilities.
An agreement has also been reached in relation to a facility of approximately USD 350 million of liabilities, where creditors will extend their debt for three years at the unchanged contractual rate of interest, the group said in a statement.
Dubai Holding also announced that it intends to appoint a new Board of Directors for DIC. Fadel Al Ali, Executive Chairman of Dubai Holding Commercial Operations Group, has been named as the Chairman.
DIC is an international investment company with a primary focus on private equity in the Middle East and Western European regions.
Ahmed Bin Byat, Chief Executive Officer, Dubai Holding, said the agreement is an important landmark for Dubai Holding.
The successful restructuring is a result of the significant commitment demonstrated by all stakeholders and Dubai Holding acknowledges their role in achieving this agreement. The restructuring puts DIC on a sound financial footing, he said.
According to David Smoot, Chief Executive Officer, DIC, the refinancing will allow for the implementation of the management team’s long-term business plan to maximise the value of the company’s portfolio of assets for the benefit of all stakeholders.
Although we are under no pressure to sell assets, we have been able to make a number of profitable exits in recent months demonstrating the quality of our investments and our ability to find buyers in current market conditions. 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.