DIC Reaches $2.5bn Debt Deal

Dubai International Capital (DIC), the private equity investment arm of Dubai Holding, has reached a final agreement with lenders for restructuring its $2.5 billion debt.

According to the terms, creditors will extend their debt for five years for debts worth $2.15 billion, and receive a two per cent cash interest coupon on the restructured facilities, the company said in a statement.

For the remaining $350 million of liabilities, creditors will extend their debt for three years at the same interest rate.

“Although we are under no pressure to sell assets, we have been able to make a number of profitable exits in recent months demonstrating the quality of our investments and our ability to find buyers in current market conditions,” David Smoot, the CEO of DIC said in the statement.

“Despite the challenging macroeconomic environment the portfolio is well-positioned to navigate current markets with less leverage, better liquidity and long-term financing, reflecting significant future value potential,” he added.

Dubai Holding also announced that it has appointed a new board for DIC. While Fadel Al Ali, executive chairman of Dubai Holding Commercial Operations Group, has been named as the chairman, David Smoot has been named as the CEO and Aidan Birkett, Christopher Rowlands and Abdullah Sharafi have been appointed as independent directors.

“Dubai Holding will continue to focus on reaching a consensual agreement with Dubai Group lenders and remains confident that the Dubai Group restructuring will also reach a successful agreement, ” said Ahmed Bin Byat, CEO of Dubai Holding.