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- Dubai 04:06 05:29 12:18 15:42 19:02 20:25
Emirates NBD (ENBD), Dubai's largest bank, and Commercial Bank of Dubai (CBD) are both talking to banks to raise a combined total of up to $1.7 billion (Dh6.239 billion) in loans to refinance existing debt, sources close to the matter said.
One of the sources said the banks were keen to raise funds before a possible further rise in borrowing costs later in the year if the US Federal Reserve hiked interest rates again.
ENBD is talking to banks about raising a three-year loan, the sources told Reuters on Wednesday. The final amount was not yet determined but could be up to $1.2 billion, one said.
The funds would refinance an existing $800 million loan that matures in December, the sources said.
ENBD secured the loan in December 2013 with a pricing of 140 basis points over the London Interbank Offered Rate (Libor), according to Thomson Reuters data.
CBD was looking to refinance a $450 million loan that matures in December, the sources added. The three-year loan had a pricing of 125 basis points over Libor, according to Thomson Reuters data.
The bank was considering raising the amount to $500 million over a three-year period, the sources said.
ENBD and CBD declined to comment.
Citing banking sources, Reuters reported on Monday that Qatar's Ahli Bank had started talks to raise a $250 million three-year loan to refinance an existing $200 million facility it signed in September 2014 and is due to mature next year.
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