DIC agrees debt extension

2 June 2010

Dubai International Capital (DIC), the private equity division of Dubai Holding, has successfully agreed a debt repayment program to be delayed by three months.

According to reports, DIC made the request for the repayment to be postponed until the end of September following the maturity of other securities.

Emirates NBD and HSBC Holdings PLC are reported to have agreed to the extension after a meeting with representatives from the firm.

The company has not provided figures on the total amount of funds owed in this payment, but a loan worth $1.25 billion was due to mature this month.

Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum owns the investment firm.

In a statement, DIC said: "The extension period would allow the implementation of a consensual longer-term plan that would enable DIC to maximise the value of its business for the benefit of all its stakeholders.”

Reports claim that DIC has a total debt of $12 billion.

The news follows the restructuring of debt by Dubai World towards the end of last year.

Dubai World is thought to have made an agreement with creditors to restructure as much as $23.5 billion worth of debt.

By Jim Ottewill

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