Dubai Holding Says Unit To Repay 750m Euro Bond
Dubai Holding was hit hard by Dubai’s property market crash and corporate debt troubles of 2008-2010.
The flagship company in the ruler of Dubai’s personal business empire, Dubai Holding, will repay a 750 million euro ($1.04 billion) bond maturing in January 2014 from available funds, Dubai Holding said in a statement on Wednesday.
Following the repayment, the unit, Dubai Holding Commercial Operations Group (DHCOG), will only have one bond outstanding, a 500 million pound ($805 million) issue maturing in 2017, the statement issued to Nasdaq Dubai said.
DHCOG was hit hard by Dubai’s property market crash and corporate debt troubles of 2008-2010, but the local economy has been recovering since then and the company’s 2012 profit surged to Dhs1.2 billion ($327 million) from Dhs204 million in 2011.
It incorporates hotels group Jumeirah, business park TECOM Investments and Emirates International Telecommunications aside from a real estate division, Dubai Properties Group.
Earlier on Wednesday, Jumeirah Group said it had raised a $1.4 billion unsecured syndicated loan due in 2019 that would help fund its expansion and also be used in part for the general corporate purposes of DHCOG.