Sales Dubai farms are gaining momentum a year after planning to freeze the payment of 24.9 billion U.S. dollars in loans

Sales Dubai farms are gaining momentum a year after the emirate's corporate logo shook world markets with plans to freeze the payment of 24.9 billion U.S. dollars in loans.

DP World Ltd., the port operator, yesterday agreed the sale of 75 percent of its unit in Australia, raising $ 1.5 billion. Borse Dubai Ltd, which controls two of Dubai, the stock exchange, raised $ 672,000,000 December 16 with the sale of half its stake in Nasdaq OMX Group Inc., owner of capital exchange second largest U.S. . UU .. Both companies said they use the funds to pay the debt.

Dubai and its state-controlled companies have so far been able to renegotiate with creditors. About $ 20 billion in debt and interest will be published next year, according to Egyptian investment bank EFG Hermes Holding SAE, raising the question whether Dubai will be forced to sell assets abroad, such as luxury retailer Barneys New York, Inc., USA hotel and casino group MGM Mirage and Canadian entertainment company Cirque du Soleil, Inc., all accumulated during the boom years.

"Dubai has been quite successful in negotiating difficult for significant cuts in the main creditors," said Gabriel stars, an emerging markets economist at brokerage Exotix Holdings Ltd. in London. "This negotiation needs some indication that they are cutting their coat according to their material, which is not credible if, while in turn drip superfluous costume jewelry, which is what non-core assets have reached to represent. "

Private equity sale

Emirates NBD PJSC, which is 56 percent owned by the Dubai government, agreed to sell a 49 percent stake in its unit credit card processing for about 2 billion dirhams ($ 545 million) to Abraaj Capital Ltd. , Dubai-based private equity firm that manages $ 6.6 billion, the bank said today. The bank is one of the largest lenders of Dubai World.

Dubai has indicated that it may be selling some of its most valuable assets with Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Supreme Prosecutor Dubai and the new chairman of Dubai World, November 28 saying that Dubai may sell units in some of its "core" companies to help reduce debt. Among the most precious national assets are Emirates Airline Dubai, the hotel operator Jumeirah Group LLC, Dubai Maritime City and Jebel Ali Free Zone.

"Realistic Approach '

"There has been an evolution in the public discourse, which has resulted in a very pragmatic and realistic approach," said Standard Chartered Plc, a senior economist Philippe Dauba-Pantanacce. "All options are on the table and this augurs well for the medium-term solution to the outstanding debt."

Barclays Capital estimates that in September of Dubai and its state-owned entities have about $ 112 million in debt - which represents more than 140 percent of gross domestic product - that accumulated during the years of growth in real estate industries and tourism.

Dubai World, one of the emirate's top three holding companies owned, has creditors to accept the new terms to 24.9 billion U.S. dollars of debt in October. Nakheel PJSC its property unit is working on a similar agreement of at least $ 10.5 billion in debt. Dubai International Capital LLC, an investment company owned by the ruler of Dubai, issued a loan of U.S. $ 2 billion for six years and a $ 500 million for four years, said on 17 December.

"Dubai Inc. certainly need cash," said Fahd Iqbal, research director at EFG Hermes. "But the need for cash, so far, has not been enough to push Dubai Inc. to consider the division of value, non-core assets at low multiples internal force."

Insurance costs fall

The cost of protecting debt against default emirate was reduced to 427 basis points on Dec. 22, its lowest level since 11 November, according to prices provided by CMA DataVision. Has been reduced from a peak of 651 basis points on Feb. 15. A basis point equals $ 1,000 annually on a contract protecting $ 10 million of debt.

The Dubai government debt, excluding the state-controlled companies is $ 30 billion, Mohammed Ibrahim al-Shaibani, director general of the court of the ruler of Dubai and CEO of the Dubai Investment Corporation, said on 28 November. He said, however, there would be no fire sale of assets.

"There is no plan to sell assets in any other region," said the chairman of DP World, Sultan Ahmed bin Sulayem in a conference call yesterday to explain the sale of its Australian unit Citi Infrastructure Investors, a unit of Citigroup Inc. "This is purely an opportunity to better manage our money "and for use in higher-margin markets of South Asia, Africa and South America, he said.

Nasdaq Sale

The sale of the participation of Dubai in the Nasdaq shows how difficult it is to recover their investments. Borse Dubai Nasdaq bought OMX shares an implicit price $ 41.01 per share in 2007, according to a statement at the time, and sold about half of them last week, 47 percent to $ 21.82 per share.

Dubai holdings has already attracted interest from some of the largest companies in the world buys. Carlyle Group, the second largest privately held company, and buying other companies have evaluated the purchase of assets owned by Dubai, the Washington-based company co-founder David Rubenstein said on 26 October.

"Dubai has built a strong portfolio of businesses with a global presence," said Rami Sidani, head of investments at Schroders Plc in the Middle East. "Emirates Airline is the most interesting and valuable company of Dubai and needs to attract huge interest. There are also companies like Dubai Airports, Dubai Duty Free and the Jumeirah Group, which are great assets."

Five-Year Plan

Dubai World and Dubai have reported both creditors of possible asset sales.

Dubai World could fetch up to U.S. $ 19.4 billion in eight years by selling assets, a person familiar with the matter said on August 25. If you sell these assets immediately, would probably receive 10.4 billion U.S. dollars, said the person at the time.

Dubai International, part of Dubai Holding, has submitted a plan to creditors to sell assets over five years to repay their debts, two people briefed on the plan said on September 15. The company has already sold shares in Sony Corp., European Aeronautic Defence & Space Co. and India's ICICI Bank Ltd. in recent years, despite poor market conditions. In June, sold its stake in Merlin Entertainments, which is majority owned by Blackstone Group LP, the largest shopping.

Dubai International still owns stakes in companies such as UK medical imaging company Alliance Medical Ltd. and the British hotel chain Travelodge Hotels Ltd., according to its website.

"Dubai has in its business model a number of activities that are not only a great success, some are global in scope and expertise," said Standard Chartered Dauba-Pantanacce. "Interest of investors just might be too high in the sale of some of these assets."