DIFC Investments Said to Seek $1 Billion Loan to Repay Sukuk
DIFC Investments LLC, which owns properties in Dubai’s tax-free financial center, started talks with banks for a loan to help repay a $1.25 billion Islamic bond due in June, two bankers with knowledge of the plan said.
The company plans to raise $900 million to $1 billion from a five-year syndicated loan and will make up the rest with its own cash, said the bankers, who declined to be identified because the information is private. The talks are at an early stage and no mandate has been awarded, they said.
A spokesman for DIFC Investments couldn’t be immediately reached when contacted today. Reuters reported the story earlier today.
Dubai government-controlled DIFC Investments owns and operates office buildings in the Dubai International Financial Centre, which is home to the regional offices of banks including Standard Chartered Plc. The company reported a loss of $274.7 million in 2010 as it wrote down the value of its properties after prices slumped in Dubai.
DIFC Investments sold the floating rate sukuk in 2007. The company had planned to raise $1 billion from asset sales by the end of last year to help pay debt.
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