FINANCIAL NEWS

Dubai Duty Free tries to decrease interest on USD1.75b loan

02 Jul 2013

(MENAFN) Dubai Duty Free aims to lower the interest on a US$1.75 billion loan by as much as 31 per cent after Dubai’s default risk plunged since the financing was signed last July, a banker familiar with the deal said, reported The National.

Dubai Duty Free, the world’s biggest airport retailer, raised the six-year syndicated loan from a group of 26 banks and has asked them to reduce interest on the dollar portion by 75 basis points, or 0.75 percentage point, over the benchmark rate, said the banker, asking not to be identified because the information is private. It has asked the margin on the dirham tranche be cut by 100 basis points, he said. Both portions paid a margin of 325 basis points.

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