Dubai World completes restructuring with $8.2 billion debt repayment

By Rebecca Melvin

New York, June 30 – Dubai World announced that it has repaid $8.2 billion of debt to its original creditors, representing the completion of a restructuring program initiated in 2010.

Repayment of the outstanding amount on June 30 was made two years ahead of the debt’s maturity Sept. 30, 2022, according to a company news release.

Since 2011, Dubai World has repaid $18.9 billion, comprised of $16.9 billion principal repayment to the original lenders, including capitalized PIK interest, and $2 billion of interest in cash.

The repayment of the loan was achieved through funds received from portfolio companies, including $6 billion from Port and Free Zone World, asset sales, including the sale of Economic Zones World for $2.7 billion; dividend payments from portfolio companies, including a $1.6 billion dividend from Infinity World; and a new $3 billion loan from Dubai Islamic Bank.

Speaking on behalf of the board, Dubai World chairman Ahmed Bin Saeed Al Maktoum, said, “Looking ahead, Dubai World will focus on streamlining and strengthening its efforts to deliver long-term value for all stakeholders.”

The company’s businesses include maritime transport and logistics, drydocks, urban development, and investment and financial services.

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