A wave of credit downgrades of Dubai’s state-owned companies have triggered an accelerated payment clause on a $2bn debt issued by the emirate’s utilities provider. Dubai Electricity and Water Authority’s $2bn securitization scheme, Thor Asset Purchase Company, an instrument originally maturing in 2036, may have to be redeemed in full on Dec 14 – the day Dubai World’s property unit, Nakheel, is due to redeem a $4bn Islamic bond, or sukuk. The payment acceleration underlines how Dubai’s attempts to restructure $26bn of debts at the Dubai World conglomerate is hitting other parts of the economy.    See also FT Alphaville and FT.com’s in-depth report on Dubai.

This entry was posted by Gwen Robinson on Wednesday, December 9th, 2009 at 4:57 and is filed under Capital markets. Tagged with dubai world, Nakheel, Thor. Edit this entry.