Dubai World offers higher rates to creditors

Dubai World (DW) has offered higher interest rates to creditors who agree to its debt rescheduling offer by Thursday although that date is not a final deadline, the Arabic language daily Al Khaleej reported on Tuesday.

Citing sources close to DW, the paper said the offer includes an increase of 20 percentage basis points above the rates defined in the original offer.

“DW will offer special incentives to credits, mainly banks, which will agree on rescheduling offer on the scheduled date set on September 9 for receiving responses.

DW expects a wide response to this offer by the creditors,” it said.

“Those who agree to this offer by Thursday will benefit from DW’s incentives involving a 20 percentage basis points above the rate set in the original offer.”

ALkhaleej quoted an unidentified DW official as saying the September 9 deadline is initial, adding that a final response could be extended for a few more weeks.

“The rescheduling process is big as it involves nearly 100 banks…it is normal that this process takes time,” the official said.

According to the paper, creditors will likely approve DW’s current offer on the grounds “it is in their interest to sign a deal with the Group as they might not obtain anything else by resorting to court.”