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 market’s uncertainty on which debt Dubai will honor in full,” said Rachel Ziemba, a senior analyst covering sovereign wealth funds at New York-based Roubini Global Economics. “They look desperate and the market is concerned that in the long term Dubai’s indebtedness is rising not falling.
