Dubai Holding gets loan extension

DUBAI Holding Commercial Operations Group said yesterday it secured an extension on a US$555 million revolving credit facility, the second time since July.

The hospitality, media and property group, which is controlled by Dubai's ruler Sheikh Mohammad bin Rashed al-Maktoum and had posted a US$6.4 billion loss last year, said the facility has been extended until November 30.

"DHCOG confirms that all parties have agreed to further extend the existing Revolving Credit Facility (RCF) of US$555 million under commercial terms until November 30th 2010," it said in a statement.

"The extension is required to enable all those involved to seek an agreement on an extended long term facility," it added.

DHCOG had extended the facility for two months in July.

Dubai Holding, the parent group including DHCOG and investment arm, Dubai International Capital, reportedly has a total debt of US$12 billion.

In June, Moody's investor services agency downgraded DHCOG's rating to B2 from B1 citing real estate concerns, as Dubai's property sector continues to reel under a crippling impact of the global financial crisis. A number of Dubai government-related firms are battling to restructure mountains of debt accumulated during five years of rapid economic growth fueled mostly by heavy borrowing.

DHCOG owns Dubai Properties Group, which was behind several major developments in Dubai, including the upmarket Jumeirah Beach Residence.

It also controls TECOM Investments which runs business parks that host foreign entities from several sectors, including media and education. AFP