Dubai Holding confirms final agreement reached with DIC lenders.

Dubai Holding confirms final agreement reached with DIC lenders.

DUBAI, 4 April 2012: Dubai Holding announced today that Dubai International Capital (‘DIC’), its private equity investment arm, has reached a final agreement with its lenders regarding the restructuring of approximately US$2.5 billion of liabilities.

Under the terms relating to approximately $2.15bn of liabilities, creditors will extend their debt for five years and receive a two per cent cash interest coupon on the restructured facilities. An agreement has also been reached in relation to a facility of approximately $350m of liabilities, where creditors will extend their debt for three years at the unchanged contractual rate of interest.

Ahmed Bin Byat, Chief Executive Officer, Dubai Holding, said: “This agreement is an important landmark for Dubai Holding. The successful restructuring is a result of the significant commitment demonstrated by all stakeholders and Dubai Holding acknowledges their role in achieving this agreement. The restructuring puts DIC on a sound financial footing.”

David Smoot, Chief Executive Officer, DIC, said: “This successful refinancing will allow for the implementation of the management team’s long-term business plan to maximise the value of the Company’s portfolio of assets for the benefit of all stakeholders. Although we are under no pressure to sell assets, we have been able to make a number of profitable exits in recent months demonstrating the quality of our investments and our ability to find buyers in current market conditions. Despite the challenging macroeconomic environment the portfolio is well-positioned to navigate current markets with less leverage, better liquidity and long-term financing, reflecting significant future value potential.”

Dubai Holding also announced that it intends to appoint a new Board of Directors for DIC. Fadel Al Ali, Executive Chairman of Dubai Holding Commercial Operations Group, has been named as the Chairman. Other nominated board members include: David Smoot, CEO; and three independent directors; Aidan Birkett, Christopher Rowlands and Abdullah Sharafi.

Rick Pudner, CEO, Emirates NBD said: “This debt restructuring represents another step in Dubai’s continued march in the right direction. The fact this restructuring was agreed with full lender consent reflected the continued support provided by Dubai Holding throughout the process and, also the unwavering commitment of the lenders towards achieving a consensual solution in the interest of all stakeholders.

“Strong fundamental economic growth story coupled with willingness and ability to address debt refinancing requirements in a timely and viable manner are strong differentiating factors for Dubai in the current global economic scenario driving investor confidence and positive sentiment around the Dubai story. This is clearly reflected in the recent tightening of Dubai CDS and we believe that it will give further traction to the growing positive momentum.”

Mr. Bin Byat concluded: “Dubai Holding will continue to focus on reaching a consensual agreement with Dubai Group lenders and remains confident that the Dubai Group restructuring will also reach a successful agreement.”

Dubai International Capital Board of Directors (Nominated)

Fadel Al Ali, Chairman

Fadel Al Ali is the Executive Chairman of Dubai Holding Commercial Operations Group (DHCOG), responsible for providing strategic and operational leadership for the Company and its business entities. Mr Al Ali has a wealth of experience in the finance industry following a long and successful career at Citibank. Mr Al Ali is board member of du, Dubai Financial Services Authority and Marfin Popular Bank.

David Smoot, Chief Executive Officer

David Smoot was appointed CEO in December 2010 having previously been Chief Investment Officer. David is also Chairman of portfolio companies Almatis and Jordan Dubai Capital. Prior to joining DIC in June 2008, Mr Smoot spent 14 years in the banking and private equity industry. Of these, 11 years were spent at Morgan Stanley.

Aidan Birkett, Independent Director

Aidan Birkett was a Managing Director of Deloitte responsible for the 1,200 strong Corporate Finance Practice, before retiring in 2010. Between 2009 and 2010 he was the Chief Restructuring Officer at Dubai World, handling the restructuring of $25bn of debt. Prior to joining Deloitte in 2001, he led the Global Business Recovery Services team at PricewaterhouseCoopers.

Christopher Rowlands, Independent Director

Christopher Rowlands was a member of 3i’s executive team, Group Investment Committee and Chairman of 3i Asia, before retiring in March 2009. He worked at Barclays Bank for 11 years, Andersen for six years and ICFC/3i for 19 years. During his time at 3i Mr Rowlands led the Company’s growth capital business and developed 3i in Asia. He is currently a Board director of Hermes GPE LLP.

Abdullah Sharafi, Independent Director

Abdullah Sharafi is President of Gerab National Enterprises LLC. Mr Sharafi brings experience and knowledge in business, economics and finance follow a distinguished career at Emirates Industrial Bank spanning over 21 years in various departments. He is currently a Board Director of a number of financial entities in the UAE and abroad.