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Dubai World to offer incentives in $25 bln debt deal restructuring

Dubai World to offer incentives in $25 bln debt deal restructuring
Dubai World is said to offer creditors a series of incentives to allow it to amend the terms of its $25 billion debt restructuring deal, including shares in global ports firm DP World, according to sources.

Sources with direct knowledge of the matter said that the company is also offering to return cash throughout the loan's lifespan, more assets as collateral, a higher interest rate and an early repayment of a first tranche of debt due next year. In addition, the Dubai government will make extra funds available to Dubai World ,reported Reuters.

In return, the firm wants creditors to grant it more time to meet a second, larger repayment currently due in 2018. In total, around $15 billion of the original renegotiated amount is outstanding after small repayments and the shift of property developer Nakheel to direct government ownership.