Finance and Economy
- The news you choose »
- Login to Add to Watchlist
Categories
Dubai World to restructure $26bn Nakheel, Limitless debt
Dubai World has announced that it has started constructive talks with banks to restructure $26bn of debt, including liabilities owed by units Nakheel World and Limitless World. The process will not include Infinity World Holding, Istithmar World and Ports & Free Zone World (which includes DP World, Economic Zones World, P&O Ferries and Jebel Ali Free Zone), all of which are on a stable financial footing the company said in a statement.
Moody's: Abu Dhabi, Federal ratings unaffected
The ratings agency Moody's has said that the restructuring of Dubai World's liabilities will not threaten the credit quality of the UAE's federal government or the emirate of Abu Dhabi. Both the federal and Abu Dhabi governments are rated 'Aa2' with a 'stable' outlook by Moody's.
Dubai 'not responsible' for Dubai World debt
Abdulrahman al-Saleh, director general of Dubai's Department of Finance has said that Dubai World's creditors need to take part of the responsibility for their decision to lend to the companies, Reuters has reported. 'They think Dubai World is part of the government, which is not correct,' he said.
Lebanon sets bond price guidance
Lebanon has set price guidance for a $500m two-tranche bond at around 6% for a $250m five-year tranche and 7.125% for a $250m 15-year tranche, Reuters has reported. Lead managers are Bank of Beirut, Citi and Societe Generale de Banque au Liban.
DP World drops almost 15% on Nasdaq Dubai
DP World, the Middle East's largest port operator and a unit of Dubai World, fell today by the maximum limit allowed by Nasdaq Dubai regulations, declining almost 15% to 37 cents. The company said on Nov 26 that it was not part of the restructuring process announced for Dubai World.
Weekly FX roundup: Markets watch for 'Dubai effect'
The Dollar and Yen surged while stocks declined as risk aversion kicked in over the thin trading session on Friday.
Abu Dhabi index tumbles 8.31%
The Abu Dhabi Securities Index plunged 241.93 points, or 8.31%, today to close on 2,668. Heavily traded stocks such as Etisalat, National Bank of Abu Dhabi, Aldar, and Abu Dhabi National Hotels each fell nearly 10% on the day. All sectors finished lower, led by real estate, telecommunications, and energy, which fell 9.9%, 9.73%, and 9.67%, respectively.
DFM loses 7.3% in Dubai World fallout
The Dubai Financial Market had its worst fall in a year today on the first day of trading after Dubai World announced that it was seeking to delay loan repayments. The index lost 7.3% to close on 1,940, with heavily traded stocks such as Emaar, Arabtec, Dubai Islamic Bank, and Air Arabia ending the day nearly 10% lower. Overall, no stocks ended higher, and only two remained unchanged.
Nakheel seeks suspension of listed sukuks
Dubai-based Nakheel on Monday requested that all three of its sukuks listed on Nasdaq Dubai be suspended. In a statement to the bourse, Nakheel asked for all three of its listed sukuks to be suspended until it is in a position to 'fully inform the market'. Last week Nakheel, which is a unit of state-owned Dubai World, said it wants to defer payment of its $3.52bn bond due in two weeks.
UAE shares tumble in early trading
Shares in Dubai's and Abu Dhabi's main stock markets fell at least 6% in the first hour of trading today, reported the BBC. The UAE markets are trading for the first time since the state-owned property company Dubai World asked for an extension on repaying its debts. Dubai's Financial Market Index dropped 6.9% in the first hour of trading, while shares in the Abu Dhabi Securities Exchange plunged 7.4%. The debt-ridden Dubai World fell 15%.
Dubai may lose its status as financial hub, says report
Dubai may lose its status as the region's financial hub in return for a rescue package from Abu Dhabi, economists and analysts told Bloomberg. The bailout will mean eliminating financially unviable parts of the competing, state-run companies which lie at the root of the city's at least $80 billion debt, Dubai-based UBS AG analyst Saud Masud told the news service. Dubai may also have to revert to specializing in trade and services, and drop its drive to become a regional banking center, Ian Hay Davison, former chairman of the Dubai Financial Services Authority said.
Abu Dhabi's 'AA/A-1+' sovereign ratings affirmed
Standard & Poor's Ratings Services has announced the affirmation of its 'AA' long-term and 'A-1+' short-term sovereign credit ratings on the emirate of Abu Dhabi, with 'Stable' outlook. 'The ratings on the emirate of Abu Dhabi are supported by the government's very strong asset position, which provides significant financial flexibility, and which has allowed Abu Dhabi to face the global economic downturn with a high degree of resilience,' the rating agency said.
Kuwait's provisional budget surplus rises to $20bn
According to Kuwait's ministry of finance, the country's preliminary budget surplus had amounted to KD5.7bn ($20bn) in the first seven months of the fiscal year ending in March 2010, as oil income exceeded forecasts, Bloomberg has reported. Government revenue grew 20% above projected income for the whole year to KD9.69bn, while spending stood at KD3.99bn. About 10% of revenue will be saved in the Reserve Fund for Future Generations, the ministry said.
Abu Dhabi to 'pick and choose' Dubai support
Abu Dhabi will 'pick and choose' which of Dubai's assets to underwrite, Reuters reported, citing an unidentified Abu Dhabi official. Abu Dhabi won't fund all of Dubai's debt, the official said, according to Reuters.
Nakheel may pay sukuk by deadline, says report
Nakheel, the Dubai-owned developer which has asked for a delay in its debt payments, may still meet the Dec. 14 deadline to pay a Dhs14.7 ($4bn) Islamic bond, The National has reported, without citing anyone. Options also being considered by Aidan Birkett, managing partner for corporate finance for Deloitte, include offering holders of the sukuk an 80% redemption, and a similar offer to bankers, the newspaper said. Dubai World, Nakheel's parent company, might also proceed with a debt holiday under its standstill proposal made on Nov. 25 as it seeks to negotiate the extension of maturities including the Islamic bonds due Dec. 14 from its Nakheel property unit, the National said. The state-controlled company might choose to liquidate assets as a last resort in response to any legal action by creditors, the National said.
It looks like you are using a Mac - check out our 
Web Feeds