(Abu Dhabi) – The Abu Dhabi Department of Finance and the UAE Central Bank signed two separate agreements with Dubai Government to refinance a total of $20 billion in loans and bonds. While the Government of Abu Dhabi has agreed to refinance $10 billion loan, the UAE Central Bank has also signed an agreement to extend the tenure of bonds issued by Dubai Government of $10 billion.
In both cases, the new tenure is set at five years renewable, with a fixed interest rate of 1 per cent through the entire tenure. Dubai borrowed the money five years ago to help the government and its government-related entities (GREs) to meet some of the debt obligations in the face of the global financial crisis. The refinancing comes ahead of its maturity this year.
Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Department and Chairman of Dubai’s Supreme Fiscal Committee, signed for the Dubai Government, while Hamad Al Hurr Al Suwaidi, Chairman of Abu Dhabi Department of Finance, signed for Abu Dhabi Government, and Khalifa Mohammad Al Kindi, Chairman of the Board of Directors of the UAE Central Bank, signed on behalf of the Central Bank.
