Dubai Refinances $20 Billion at Below Nation Inflation Rate
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Dubai, the emirate that had debt maturing this year equivalent to a third of its economy, refinanced $20 billion at a quarter of the original cost, freeing cash to service liabilities and fund expansion plans.
The sheikhdom rolled over $10 billion of bonds owed to the central bank and a loan of the same amount due to Abu Dhabi’s government, and will pay a fixed interest of 1 percent on both, according to a statement on state-run WAM news agency yesterday. The rate is less than the United Arab Emirates’ 1.1 percent inflation for 2013, and half the inflation rate forecast for this year. The new debts are renewable after five years.