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Lloyds cancels sale of $540m of Dubai World debt

Lloyds Banking Group Plc, one of Dubai World’s largest creditors, has cancelled a plan to sell its loans to the company after offers fell short of the reserve price, Bloomberg has reported, citing three people with knowledge of the matter. The UK lender decided to keep $540m of its loans to the Dubai-based company following an auction on July 3, said the people. Dubai World’s debt is split between a $4.4bn loan due to be repaid in September 2015, and a $10.3bn loan due in September 2018. It repaid $300m debt ahead of schedule at the end of June.