Dubai sees big IPO in 2014/15
Last year, Al Habtoor Group, one of Dubai's biggest family-owned firms, postponed plans to raise as much as $1.6 billion.
March 5, 2013 2:29 by Reuters
Dubai has regained its footing since its shock 2009 request for a standstill agreement to restructure Dubai World’s massive debt. It required a $10-billion lifeline from Abu Dhabi to avoid an embarrassing debt default. A pick-up in its logistics and tourism sectors and its safe-haven status have helped.
A $1.25 billion two-tranche issue by Dubai this year included a $750 million Islamic bond that was heavily oversubscribed, underlining the emirate’s recovery.
And while Dubai faces nearly $50 billion of debt maturing between 2014 and 2016, it is better equipped to handle redemptions than it was in 2009, Standard Chartered said in a report in November.
“There’s a plan in place and we’re looking at different options. We’re always in talks with banks,” Shaibani said. “Definitely we will not see another 2009 happening.”
The emirate will face the first repayment in the Dubai World restructuring deal in 2015 and needs to raise $4.4 billion to meet obligations.