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Dubai World reaches deal with main creditors

Dubai World reaches deal with main creditors
Emirates NBD
EMIRATESNBD
1.45% 17.55 0.25
ADCB
ADCB
-0.83% 8.33 -0.07
UAE government-owned company Dubai World has reached an agreement with its main creditors to extend the repayment of its debt amounting to $10.3 billion, reported news agency Bloomberg, quoting informed sources as saying, adding that the according to the deal, the Group will repay its debt in 2022, four years later than previously agreed.

Moreover, Dubai World has agreed to repay $4.4 billion worth of debt due September 2015, if 67% of creditors approve the deal, the sources, who spoke on condition of anonymity to Bloomberg noted.

Constituting the creditor committee are HSBC Holdings, Standard Chartered Bank, Bank of Tokyo Mitsubishi UFJ Ltd, Emirates NBD and Abu Dhabi Commercial Bank (ADCB).

Dubai World has agreed to raise its loan interest rate from the average 2.4% agreed to in 2011, the sources added, noting that by extending the loan maturities, Dubai World may be able to retain key assets it would have had to sell to meet debt repayments.