Dubai World made a final payment of $8.2 billion to creditors two years ahead of schedule, completing a debt restructuring that weighed on the emirate for almost a decade.
The government-owned conglomerate made the payment -- due in September 2022 -- using funds from its portfolio of companies, it said in a statement on Tuesday. The company has repaid $18.9 billion to creditors since 2011.
It comprises a $16.9 billion repayment to original lenders, including capitalized payment in kind, as well as $2 billion in cash interest.
The repayment was achieved through:
- Funds, 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 $1.6 billion dividend from Infinity World
- New $3 billion loan from Dubai Islamic Bank
“The full repayment represents an important milestone for both Dubai World and for Dubai,” Dubai World Chairman Sheikh Ahmed Bin Saeed Al Maktoum said in the statement. “Dubai World will focus on streamlining and strengthening its efforts to deliver long-term value for all stakeholders.”
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