x Abu Dhabi, UAESaturday 22 July 2017

Investors expect good news from Dubai World

Global investors are expecting positive news from Dubai today as the ports operator DP World unveils full-year figures and formal proposals from its parent Dubai World on its debt restructuring draw near.

Global investors are expecting positive news from Dubai today as the ports operator DP World unveils full-year figures and formal proposals from its parent Dubai World on its debt restructuring draw near. DP World, listed on NASDAQ Dubai, is likely to report a profit decline for last year, caused by the downturn in world trade during the financial crisis. But analysts believe there will be a "cautiously optimistic" assessment of trading for this year.

Markets are also looking for positive news on DP World's plans for a London listing, which could free up liquidity and give the shares a boost. Credit Suisse and Deutsche Bank recently rated the shares a "buy" with targets of 60 cents and 65 cents respectively. DP World shares closed at 48 cents yesterday, up 2.1 per cent. Meanwhile, Dubai World representatives are to meet members of the co-ordinating committee of creditors today to discuss formal proposals on the long-awaited restructuring of US$26 billion (Dh95.5bn) of debt.

The company could make a detailed announcement on the terms of the plans soon after that meeting, a person familiar with the procedure said on condition of anonymity. A spokeswoman for the Dubai Financial Support Fund (DFSF) said: "Meetings are part of the ongoing process and take place regularly." DFSF, which is itself a major creditor of Dubai World, has to approve the terms. Senior officials met Dubai World advisers in the Dubai International Financial Centre yesterday.

Creditors are likely to be asked to agree to an extension of repayment terms for a period of between five and eight years and to accept lower rates of interest in that period. @Email:fkane@thenational.ae