IslamicFinance.de

According to Essa Kazim, the chairman of the Borse Dubai, the emirate's strategy to become a global centre for Islamic business and finance is paying off, although it is still at an early stage. Underlining its ambitions, the emirate raised US$1.25 billion (Dh4.59bn) in government sukuk at competitive interest rates last week. The Dubai Financial Market General Index is one of the best performing in the world over the last 12 months.

Haris Anwar reported on 17 February on Bloomberg that Borse Dubai Ltd. may get half of the USD 2.5 bn it sought to refinance a one-year loan used for the purchase of Swedish exchange operator OMX AB as lenders tighten credit for the emirate amid concern over its ability to repay. The facilty has to pay according bankers 325 basis points over the LIBOR, with an additional 125 basis-point fee and 75 basis-point margin if the lenders allow for a one-year extension. HSBC Holdings Plc is leading the syndication for Borse Dubai. The financing will have a portion compliant with Islamic restrictions.