Dubai Holding unit repays $500m bond

Dubai Holding Commercial Operations Group (DHCOG) confirmed yesterday the repayment, on February 1, of a $500m bond and three scheduled coupon payments on its Medium Term Notes.

Ahmad Bin Byat, Chief Executive Officer, Dubai Holding said: “Dubai Holding Commercial Operations Group will repay the US dollar bond, and make the coupon payments, from its internal cash flow. [the] announcements reaffirm DHCOG’s proven track record of meeting its financial obligations in full when they are due.

“DHCOG’s operating liquidity remains good. It has robust hotel management, telecom, free zone and property businesses that contribute a healthy cash flow.”

At the same time, Fitch Ratings on Wednesday said it has revised the outlook on DHCOG to Stable from Negative.

“The Outlook revision reflects the company’s good progress with its non-core asset disposal programme and better than expected operating performance in the hospitality and rentals divisions and reduced leverage,” it said.

It noted that DHCOG “has no significant maturities before 2014” after the latest repayment announcement.

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