Morgan Stanley, owner of the world’s biggest brokerage, is predicting the return of initial public offerings worth more than $1 billion in the Persian Gulf after asset values and stock markets rallied.
Dubai World, the state-owned holding company seeking to alter the terms on $14.4 billion of bank debt, may raise as much as $19.4 billion in eight years by selling assets, a person with knowledge of the matter said.
Dubai named Sheikh Ahmed bin Saeed Al Maktoum, head of Emirates airline and uncle of the state’s ruler, as chairman of Dubai World in a board revamp a year after the company said it would halt loan repayments, roiling markets.
Dubai World, the state-owned holding company that sought to alter the terms on about $25 billion of debt, signed a final deal with creditors, marking the end of a restructuring that roiled global markets in 2009.
Dubai Group LLC, the investment company that has been seeking payment relief on loans for the past three years, repaid a $300 million syndicated facility led by Citigroup Inc., two people with knowledge of the matter said.
Dubai World, the state-owned holding company, reached an agreement with its main creditor group to restructure $23.5 billion of liabilities as it seeks to resolve a debt crisis that roiled global markets last year.
Dubai World, the state-owned company seeking to renegotiate the terms on $23.5 billion of debt, said it expects to complete the restructuring process in the “coming months” after a meeting with its creditors in the emirate today.
Omani banks are owed 19 million rials ($49 million) by Dubai World, which is restructuring $24.8 billion of debt, and banks will be asked to book provisions if loan maturities are extended, Oman’s central bank governor said.
Dubai World’s approval from creditors to change the terms on $24.9 billion of debt is likely to boost confidence in the debt-laden emirate and its banks, according to UBS AG and Moody’s Investors Service.