Commercial Bank of Dubai PSC, in which Dubai’s government owns a 20 percent stake, has begun talks with banks to extend a $400 million loan that matures in September, Chief Executive Officer Peter Baltussen said.
The firm’s nine relationship banks “are very happy with the risk,” Baltussen said in an interview in Dubai yesterday. The loan will be rolled over for three years with an interest margin “slightly higher” than the previous financing, he said.
Commercial Bank of Dubai borrowed $400 million in September 2008 at 75 basis points more than the London interbank offered rate for general corporate purposes, according to data compiled by Bloomberg. The bank reported on Jan. 30 a 2.2 percent rise in net income for 2010 to 821 million dirhams ($223 million).
Commercial Bank of Dubai is rated A- by Fitch, its seventh highest investment grade score and an equivalent A3 by Moody’s Investors Services.