Repayment reaffirms Dubai Government’s commitment to deal with its repayment obligations in a proactive manner, says Al Saleh
The Government of Dubai, acting through the Department of Finance, has announced that the outstanding Dh3.34 billion of its AED Bonds due in April 2013 across the dual tranches fixed as well as floater notes issued under its Dh15 billion Medium Term Note Programme dated April 14, 2008, reached maturity on April 23, 2013.
Upon maturity, all the outstanding notes were redeemed in full by making the required payment through the paying agent to the holders of all outstanding notes, along with accrued interest.
Abdulrahman Saleh Al Saleh, Director-General of the Department of Finance, said: “This repayment reaffirms Dubai Government’s commitment to deal with its repayment obligations in a proactive manner. It also strengthens the government’s resolve to honour all its financial obligations on time.”
As Dubai’s economic prospects getting stronger, the global financial community is of the firm belief that the emirate is in a strong financial position to repay its debt when due.
According to a recent Bank of America-Merrill Lynch report, “Dubai has shown its ability to grow again, with a respectable 4 per cent pace easing deleveraging, and a perception that the real estate market has bottomed (and in some segments seeing a V shape recovery).”
The bank said that it expects “the important 2013 maturities (ICD, Borse Dubai) to be met, Dubai Group restructuring to end this year and see a chance Dubai makes a modest payment toward its $20bn Abu Dhabi-related debt in 2014 to buoy sentiment.”