Dubai World Fulfils Obligations to Creditors Totalling USD 18.9 Billion
Repays Final Tranche 2 Years Ahead of Schedule
DUBAI, UAE, June 30, 2020 /PRNewswire/ -- Dubai World announced today the repayment of the final tranche of debt to its original creditors, completing the refinancing program that commenced in 2010.
The repayment of the final outstanding sum amounting to USD 8.2 billion on the 30th June, marks the fulfillment of Dubai World's obligation to its original creditors, well before the final maturity date of the debt facility on the 30th September 2022.
Since 2011, Dubai World has repaid a total sum of USD 18.9 billion. This compromises of a principal repayment of USD 16.9 billion to the original lenders, including capitalised PIK interest, in addition to USD 2 billion of cash interest.
The repayment of the entire loan amount was achieved through: funds received from portfolio companies, including USD 6 billion from Port and Free Zone World; asset sales, including the sale of Economic Zones World for USD 2.7 billion; dividend payments from portfolio companies, including a USD 1.6 billion dividend from Infinity World; and a new USD 3 billion loan from Dubai Islamic Bank.
Speaking on behalf of the Board, His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Dubai World, commented: "The full repayment represents an important milestone for both Dubai World and for Dubai. Throughout the last ten years, Dubai World has met its obligations in full and well ahead of schedule. We invariably acted transparently, and remained committed, at all times, to the course of action agreed with all parties involved."
"Looking ahead," His Highness Sheikh Ahmed Bin Saeed Al Maktoum continued, "Dubai World will focus on streamlining and strengthening its efforts to deliver long-term value for all stakeholders."
"Once more," he continued, "our action underscores Dubai's commitment to always meet its obligations."
About Dubai World:
Global holding company Dubai World focuses on the strategic growth areas of Transport & Logistics, Drydocks & Maritime, Urban Development, Investment & Financial Services. Our portfolio contains some of the world's leading companies in their industries, including Drydocks World, Economic Zones World, Istithmar World and ownership of DP World. Dubai World has embarked on a process to streamline the Group and its core activities. This will allow us to move forward with greater efficiency.