Saturday, Jul 16, 2011
(This item was originally published Thursday.)
DUBAI (Zawya Dow Jones)--As Dubai government-related entities grapple with massive piles of debt, a unit of Dubai Holding, the investment conglomerate of the emirate's ruler, said it repaid a CHF250 million ($307 million) Swiss bond that was due Thursday.
The group said in an emailed statement it is "committed to meeting its financial obligations as and when they fall due."
Of Dubai's total publicly-held debt of $113 billion, government-related entities account for $89.4 billion, or 81.2% of GDP generated in Dubai and the northern emirates in 2010, the International Monetary Fund said last month.
Dubai Holding Commercial Operations Group, or DHCOG, is the real estate and hospitality arm within the business empire owned by Dubai's ruler Sheik Mohammed bin Rashid Al Maktoum. Dubai Holding is still currently in talks with creditors to restructure an estimated $10 billion of debt.
Dubai Holding Commercial Operations Group is a collection of several companies including real estate companies Dubai Properties Group, Sama Dubai and Tatweer Dubai, as well as luxury hotel operator Jumeirah Group.
In May, DHCOG posted a net profit of $61.3 million, boosted by higher income generated by the handover of completed real estate projects and revenue from its hospitality operations.
Other Dubai Holding subsidiaries have also moved to raise fresh funds or to reduce debt. Emirates International Telecommunications, the communications investment arm of Dubai Holding, said in June it sold part of its stake in Axiom, the mobile handset retailer and distributor. And Dubai International Capital, the private equity arm of Dubai Holding, recently said it completed the sale of a 45% stake in KEF Holdings for $178 million.
-By Nicolas Parasie, Dow Jones Newswires; +9714 446-1681; nicolas.parasie@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
16-07-11 0755GMT
