Dubai signs $2.5bn debt agreement for private equity arm

Dubai International Capital (DIC), Dubai Holding's private equity arm, has reached an agreement with creditors on restructuring $2.5bn of debt.

As per the terms of the new deal, lenders will get 2% interest on the restructured facilities and will extend their debt for five years, while the maturities of a additional $350m will be extended for three years at an "unchanged contractual rate of interest."

Dubai Holding Chief Executive Officer Ahmed Bin Byat said the agreement was an important landmark for the firm and puts DIC on a sound financial footing.

"The successful restructuring is a result of the significant commitment demonstrated by all stakeholders and Dubai Holding acknowledges their role in achieving this agreement. The restructuring puts," Byat added.

Dubai Holding also intends to appoint a new Board of Directors for DIC with Fadel Al Ali named as the Chairman, who is currently the Executive Chairman of Dubai Holding Commercial Operations Group.

Other nominated board members include David Smoot as CEO and three independent directors, Aidan Birkett, Christopher Rowlands and Abdullah Sharafi.

Dubai International has already disposed its stakes in Sony, European Aeronautic Defence & Space and India's ICICI Bank.

A group of six lenders, HSBC Holdings (HSBA), Emirates NBD, Royal Bank of Scotland (RBS), Lloyds Banking (LLOY), Mashreqbank and Noor Islamic Bank, negotiated with Dubai International on behalf of about 20 lenders.