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Borse Dubai Extends $2.5b Loan to February 2011

(Issac John) / 20 January 2010

DUBAI - Borse Dubai Limited said on Tuesday that it would exercise an option to extend for one year a $2.5 billion syndicated loan, which is due for repayment next month.

Borse Dubai, the holding company of Nasdaq Dubai and the Dubai Financial Market, said in an emailed statement that  it had informed the participating banks of its “decision to exercise the one-year extension options of the multi-currency syndicated facility.”

The decision to extend the loan to February 2011, which came one month ahead of the repayment date, also sought to put to rest speculation about how the government-owned entity would meet its maturity obligation.

Borse Dubai raised the syndicated financing in February 2009 with a one-year maturity plus a one-year extension option at the discretion of the borrower. The facility has a conventional and Islamic tranche, and pays 325 basis points a year over the London interbank offered rate.

Participating banks included India’s Bank of Baroda, Dubai Islamic Bank PJSC, Emirates Bank International PJSC, HSBC Holding PLC, National Bank of Abu Dhabi PJSC, Skandinaviska Enskilda Banken AB, The Bank of Tokyo-Mitsubishi UFJ Ltd. and Union National Bank.

At the time of raising the loan a year ago,  Borse Dubai said the $2.5 billion Term Loan Facility, which together with a $1 billion equity injection from shareholders, would help refinance the aggregate $3.8 billion Term Loan and Guarantee Facility used to fund investments into Nasdaq OMX Group and the London Stock Exchange.


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