Dubai - Arabstoday
The Investment Corporation of Dubai (ICD), the investment arm of the Government of Dubai, announced that it will repay in full the $4 billion (Dh14.7 billion), three-year tranche of the $6 billion conventional and Islamic facilities signed on August 21, 2008, the Dubai Government Media Office said in a statement yesterday. The facility falls due on August 21. The maturing obligation will be repaid from internal sources derived principally from cash dividends received from the ICD\'s operating subsidiaries. \"Today\'s announcement demonstrates that as part of the Government of Dubai, [the] ICD is committed and able to meet its debt obligations. This substantial repayment is the result of our strong portfolio of diverse and successful companies across Dubai, as well as the underlying strength of our economy,\" said Mohammad Al Shaibani, executive director and CEO of the ICD. Strong fundamentals Analysts said the ICD\'s move to repay the loans at a time when global markets are under huge selling pressure will send out a message that Dubai\'s recovery has strong fundamentals. \"Investors had been expecting [the] ICD to pay just part of the loans and then roll over the rest. It sends a strong signal that Dubai can repay debt from their internal sources,\" said Zafar Nazim, senior Mideast credit analyst at JP Morgan in London. The three-year tranche comprises of $2.5 billion of conventional financing and $1.5 billion of Islamic financing. The remaining five-year tranche of $2 billion matures on August 21, 2013. The lenders of this syndicated facility are a mix of local and international banks. \"Dubai is witnessing a recovery and remains a stable financial centre. The emirate continues to be an attractive destination for business, tourism and trade and has proven its resilience in recent times,\" Al Shaibani said. Besides Emirates, the ICD controls Dubal, the Enoc, Dubai World Trade Centre and a number of local banks including Emirate NBD.