Text size:

  • Small
  • Normal
  • Large

ICD on track to pay $4bn of liabilities this month

Investment Corporation of Dubai (ICD), the government-owned holding company for some of the emirate's most valuable assets, will meet in full its scheduled $4 billion of financial liabilities this month.

Investment Corporation of Dubai (ICD), the government-owned holding company for some of the emirate's most valuable assets, will meet in full its scheduled US$4 billion (Dh14.69bn) of financial liabilities this month.

The move will be regarded as a boost to Dubai's financial health at a time of global worries. The payments, comprising $2.5bn of conventional and $1.5bn of Islamic financing, will be made on August 21.

Mohammed Al Shaibani, the chief executive of ICD, said the news "demonstrates that as part of the Government of Dubai, ICD is committed and able to meet its debt obligations. This substantial repayment is the result of our strong portfolio of diverse and successful companies across Dubai, as well as the underlying strength of our economy.

"Dubai is witnessing a recovery and remains a stable financial centre. The emirate continues to be an attractive destination for business, tourism and trade and has proven its resilience in recent times."

The repayments will be made mainly from cash dividends received from ICD's operating companies, which include the aviation business Emirates Group, the aluminium manufacturer Dubal, Emirates NBD bank and a stake in the property company Emaar.

After the repayment, at group level ICD has a total of $2bn liabilities outstanding, which it promised to repay on schedule in two years.

There is also debt associated with the subsidiary companies, which is not guaranteed by the holding company.

Earlier this year, analysts at the investment bank Credit Suisse estimated ICD's total indebtedness, including that of its subsidiaries, at $24bn, compared with total assets, including stakes in subsidiaries, of $30bn.

The $4bn repayment lifts what Credit Suisse called a "medium-term liquidity risk".

 

fkane@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National