Dubai World – a state-controlled investment company specializing in massive infrastructure projects – is seeking an extension in repaying an estimated $60 billion in debt. The request include $3.52 billion in bonds due December 14th from Dubai World’s property unit Nakheel PJSC following a ratings downgrade from Moody’s and Standard and Poor’s.
Extending the maturity of Nakheel debt is feeding the marketÃ¢â‚¬â„¢s uncertainty on which debt Dubai will honor in full,Ã¢â‚¬Â said Rachel Ziemba, a senior analyst covering sovereign wealth funds at New York-based Roubini Global Economics. Ã¢â‚¬Å“They look desperate and the market is concerned that in the long term DubaiÃ¢â‚¬â„¢s indebtedness is rising not falling.
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