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01 March 2024

Borse Dubai gets loans worth Dh21.2 billion

By Parag Deulgaonkar



Borse Dubai, which offered to buy OMX AB, agreed to $5.8 billion (Dh21.2bn) of loans with a group of international banks to help pay for the acquisition and the shares of London Stock Exchange Group it plans to buy.
Borse Dubai got two one-year loans, one for $4.2bn (Dh15.4bn) and the other for £796 million (Dh5.8bn), from a group of six banks led by HSBC Holdings, financial data compiled by the agency Bloomberg showed.

Bank of Tokyo-Mitsubishi UFJ Ltd, Barclays Capital, Citigroup, Emirates NBD, and Goldman Sachs Group joined HSBC in the loan.

Borse Dubai Chief Executive Officer Per Larsson in October said HSBC would manage the borrowing.

Borse Dubai and Nasdaq Stock Market, once rivals for control of Nordic exchange OMX, agreed in September that Dubai would proceed with its bid and then hand the shares to Nasdaq. In return, Nasdaq would give almost 20 per cent of its stock to Borse Dubai and sell it a 28 per cent holding in London Stock Exchange.

Larsson on November 20 said he expected to close Borse Dubai’s $4.9bn (Dh18bn) OMX acquisition by the end of February.

It was earlier reported that the Qatar Investment Authority and Borse Dubai were close to an agreement about swapping stakes in OMX and London Stock Exchange Group.

Qatar may trade some of its 9.98 per cent of OMX to Dubai in exchange for shares of LSE to increase its 14.9 per cent holding, according to two people with knowledge of the negotiations.

The Qatari Government-owned investment fund has scrapped an application to buy OMX.

It said in a statement it “regards its investment in OMX as a very valuable asset and is actively considering a range of options.” The alternatives “no longer require an application” to the regulator, Qatar said.

Borse Dubai expects to complete its takeover of the Nordic exchange by the end of February, pending regulatory approval.

“We hope to conclude the deal with OMX by the end of February,” Per Larsson said.

“We need approval from all the regulators,” he said, including in the United States and Scandinavia.

Borse Dubai is aiming to become the world’s third-largest stock market operator by using the acquisition route, and is open to buying stakes in exchanges, Chairman Essa Kazim told Emirates Business in August.

“Borse Dubai has been formed to explore joint opportunities for the development of capital markets in the region and across the globe.
This is our business and any offer that suits our business requirement will be accessed,” Kazim said.