DP World’s $5.15bn dividend to Dubai World is credit positive for UAE banks – The National

DP World’s $5.15bn dividend to Dubai World is credit positive for UAE banks – The National

Dubai World plans to use the money to repay debt it owes to UAE banks and international investors, Moody's says. Dubai World is expected to use the money to repay around $5bn of the nearly $11bn in restructured debt it owes to UAE lenders and international investors.. "We expect varying credit-positive effects among creditor banks depending on whether and how much they contribute to financing the new $9bn of PFZW debt guaranteed by DP World," Moody's said.. "For creditor banks that do not extend financing to DP World, the debt repayment would result in a net reduction in their exposure to the Dubai World Group, which is credit positive.". The transaction would give PFZW full ownership of DP World, which will then be delisted from Nasdaq Dubai.. PFZW and DP World will raise up to $9bn of debt to buy out minority shareholders, pay a $5.15bn dividend to Dubai World, which is the sole shareholder of PFZW and refinance some upcoming debt maturities and DP World's $254.4 million of outstanding convertible bonds.. "For creditor banks that decide to extend financing to DP World in an amount similar to their expected repayment from Dubai World, the operation would effectively improve their