Dubai World made a $8.2 billion (Dh62bn) final payment to creditors two years ahead of schedule, completing a refinancing programme that began in 2010.
The government-owned entity, which owns DP World and investment company Istithmar Word, said payment of the outstanding amount on the bonds meant it had repaid a total of $18.9bn since the refinancing took place.
This is made up of a principal repayment of $16.9bn to the original lenders, including capitalised PIK interest, in addition to $2bn of cash interest.
“The full repayment represents an important milestone for both Dubai World and for Dubai," said Dubai World's chairman, Sheikh Ahmed Bin Saeed Al Maktoum.
"Throughout the last ten years, Dubai World has met its obligations in full and well ahead of schedule," he said. "We invariably acted transparently, and remained committed, at all times, to the course of action agreed with all parties involved.”
The repayment of the loan amount was achieved through funds received from portfolio companies, including $6bn from Port and Free Zone World; asset sales, the sale of Economic Zones World for $2.7bn; dividend payments from portfolio companies, a $1.6bn dividend from Infinity World; and a new $3bn loan from Dubai Islamic Bank.
“Looking ahead, Dubai World will focus on streamlining and strengthening its efforts to deliver long-term value for all stakeholders," Sheikh Ahmed said. “Once more, our action underscores Dubai’s commitment to always meet its obligations.”
In February, ports operator DP World said it was delisting from the Nasdaq Dubai exchange in a deal, which would see its parent company Ports and Free Zones World make a $5.15bn payment to Dubai World.
The payment facilitated "discharging outstanding obligations to banks", so that DP World can "implement its strategy without any restrictions from Dubai World’s creditors", the company said.
PFZW said it would fund the deal through a new debt facility, arranged by Citibank and Deutsche Bank.
DP World had also previously paid Dubai World $405m in September 2017 to acquire group entities Drydocks World and Dubai Maritime City – a drydock and a maritime zone close to the city's historic Port Rashid. It also acquired the Jebel Ali Free Zone, which is the emirate's largest, for $2.6bn in 2014.
"The early completion of the refinancing program would not have been possible without the perseverance of [DP World chairman] Sultan bin Sulayem and his team," said Mohammed Al Shaibani, a member of Dubai World's board.
"Their commitment to the process and the joint resolve to make stakeholders whole again has ensured that Dubai World remains a strategic part of Dubai’s economic landscape."
The early repayment of the debt was described as "significant" by Ullas Rao, assistant professor of finance at Heriot Watt University in Dubai.
The move could create "ripple effects across sectors including real estate and tourism, encouraging credit rating agencies to place a positive outlook on the economy", he said.
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Shelina Janmohamed: Why shouldn't a spouse be compensated fairly for housework?
Samar Elmnhrawy: How companies in the Middle East can catch up on gender equality
The National Editorial: Is there much to celebrate on International Women's Day 2021?
Justin Thomas: Challenge the notion that 'men are from Mars, women are from Venus'
Killing of Qassem Suleimani
National Editorial: Suleimani has been killed, now we must de-escalate
Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
Matthew Levitt: Iran retains its ability to launch terror attacks
Damien McElroy: A CEO tasked with spreading Iran's influence
Hussein Ibish: Trump's order on solid constitutional ground
Rashmee Roshan Lall: Sound of silence in South Asia
Wayne Rooney's career
Everton (2002-2004)
- Appearances: 48
- Goals: 17
Manchester United (2004-2017)
- Appearances: 496
- Goals: 253
England (2003-)
- Appearances: 119
- Goals: 53
Tomorrow 2021
On Women's Day
Dr Nawal Al-Hosany: Why more women should be on the frontlines of climate action
Shelina Janmohamed: Why shouldn't a spouse be compensated fairly for housework?
Justin Thomas: Challenge the notion that 'men are from Mars, women are from Venus'
The National Editorial: Is there much to celebrate on International Women's Day 2021?
• Remittance charges will be tackled by blockchain
• UAE's monumental and risky Mars Mission to inspire future generations, says minister
• Could the UAE drive India's economy?
• News has a bright future and the UAE is at the heart of it
• Architecture is over - here's cybertecture
• The National announces Future of News journalism competition
• Round up: Experts share their visions of the world to come
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UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
War on waste
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Plastic tipping points
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Killing of Qassem Suleimani
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Jack Moore: Why the assassination is such a monumental gamble
Matthew Levitt: Iran retains its ability to launch terror attacks
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Fixtures (all in UAE time)
Friday
Everton v Burnley 11pm
Saturday
Bournemouth v Tottenham Hotspur 3.30pm
West Ham United v Southampton 6pm
Wolves v Fulham 6pm
Cardiff City v Crystal Palace 8.30pm
Newcastle United v Liverpool 10.45pm
Sunday
Chelsea v Watford 5pm
Huddersfield v Manchester United 5pm
Arsenal v Brighton 7.30pm
Monday
Manchester City v Leicester City 11pm
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How much of your income do you need to save?
The more you save, the sooner you can retire. Tuan Phan, a board member of SimplyFI.com, says if you save just 5 per cent of your salary, you can expect to work for another 66 years before you are able to retire without too large a drop in income.
In other words, you will not save enough to retire comfortably. If you save 15 per cent, you can forward to another 43 working years. Up that to 40 per cent of your income, and your remaining working life drops to just 22 years. (see table)
Obviously, this is only a rough guide. How much you save will depend on variables, not least your salary and how much you already have in your pension pot. But it shows what you need to do to achieve financial independence.
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National Editorial: Suleimani has been killed, now we must de-escalate
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SPECS
Brief scores:
QPR 0
Watford 1
Capoue 45' 1
Abramovich London
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2.
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4.
5.
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Results
6.30pm: Maiden (TB) Dh82,500 (Dirt) 1,200m; Winner: Major Cinnamon, Fernando Jara, Mujeeb Rahman
7.05pm: Maiden (TB) Dh82,500 (D) 1,900m; Winner: Al Mureib, Fernando Jara, Ahmad bin Harmash
7.40pm: Handicap (TB) Dh102,500 (D) 2,000m; Winner: Remorse, Tadhg O’Shea, Satish Seemar
8.15pm: Conditions (TB) Dh120,000 (D) 1,600m; Winner: Meshakel, Xavier Ziani, Salem bin Ghadayer
8.50pm: Handicap (TB) Dh95,000 (D) 1,600m; Winner: Desert Peace, William Buick, Charlie Appleby
9.25pm: Handicap (TB) Dh87,500 (D) 1,400m; Winner: Sharamm, Ryan Curatlo, Satish Seemar
TICKETS
For tickets for the two-day Maharlika Pilipinas Basketball League (MPBL) event, entitled Dubai Invasion 2019, on September 27 and 28 go to www.meraticket.com.
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SCHEDULE
6.30pm Maiden Dh165,000 (Dirt) 1,400m
7.05pm: Handicap Dh170,000 (D) 1,600m
7.40pm: Maiden Dh165,000 (D) 1,600m
8.15pm: Handicap Dh210,000 (D) 1,200m
8.50pm: Handicap Dh210,000 (D) 2,000m
9.25pm:Handicap Dh185,000 (D) 1,400m
Amith's predicted winners:
6.30pm: Down On Da Bayou
7.05pm: Etisalat
7.40pm: Mulfit
8.15pm: Pennsylvania Dutch
8.50pm: Mudallel
9.25pm: Midnight Sands
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- Fast fashion is responsible for 24 per cent of the world's insecticides
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- Fast fashion labour workers make 80 per cent less than the required salary to live
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
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Dr Nawal Al-Hosany: Why more women should be on the frontlines of climate action
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