DDF re-prices $1.75 billion loan

|By TAP Staff| Dubai Duty Free (DDF) has completed re-pricing a $1.75 billion loan for the second time in about a year with more favourable terms, the leading retailer announced in a statement. It said a second facility worth $750 million has also been renegotiated.

The $1.75 billion six-year loan, originally signed in July 2012 but repriced a year later, now carries an interest rate of 1.5 percent above the Emirates Interbank Offered Rate (Eibor) on the dirham-denominated tranche after the second amendment, DDF announced.

The new margin on the dollar-denominated portion of the loan is 1.75 percent above the London interbank offered rate (Libor).

“In consideration for consenting to the re-pricing request, financial institutions are compensated with an amendment fee,” the retailer said in its statement without detailing how much the fee was.

Citibank acted as sole coordinator for the loan re-pricing.

A separate $750 million, dollar-denominated loan taken last September has also been re-priced to 1.75 percent over Libor from 2.25 percent. This deal was arranged by Emirates NBD.

A number of Dubai entities, including DP World, have refinanced their debt to obtain more favourable terms, taking advantage of Dubai’s improved creditworthiness.