x Abu Dhabi, UAEWednesday 26 July 2017

Dubai Holding wins extension on $555m of credit

The property and hospitality wing of Dubai Holding has been given a two-month extension on a revolving credit facility that matures this month.

Dubai Holding Commercial Operations Group, the property and hospitality wing of Dubai Holding, has been given a two-month extension on a US$555 million (Dh2.04 billion) revolving credit facility that matures this month, to give it time to renegotiate the facility. The facility was extended at commercial terms and is needed to facilitate the finalisation of the documentation to renew the facility, Dubai Holding said in a statement posted on the Nasdaq Dubai website today. On June 30, Dubai Holding Commercial had its debt ratings cut by Moody's Investors Service from B1 to B2, the fifth- highest non-investment grade. The ratings remain under review for further possible downgrade, according to Moody's.

Dubai Holding Commercial reported a full-year loss of Dh22.8 bn on June 1, down from a profit a year earlier of Dh10bn after property prices plunged. Impairment charges for the year almost tripled to Dh22.5bn from Dh7.6bn in 2008, while revenue dropped by almost a third to 9.5 billion dirhams from 13.2 billion dirhams. Dubai Holding, Dubai Holding Commercial's parent, and its subsidiaries owe banks $12bn and have begun talks to roll over some loans, a person with knowledge of the matter said on May 10. Almost three quarters of the loans have been racked up by Dubai Holding's two investment companies, Dubai Group and Dubai International Capital, the source said. * Bloomberg