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Mubadala Development Seeks Refinance of LIBOR-Based Loan |
January 26, 2010
According to Dow Jones Newswire, Mubadala Development, a prominent commercial developer headquartered in Abu Dhabi, is seeking to refinance an existing LIBOR-based loan. LIBOR stands for London Interbank Offered Rate and is a filtered average of rates that banks charge each other for unsecured, short-term loans.
The LIBOR-based loan that Mubadala would refinance has a principal of $2 billion and matures this April. Current cost of funds is LIBOR plus 17 basis points. Dow Jones quotes a source who says that Mubadala’s new interest rate would consist of a much higher margin above LIBOR. The replacement for Mubadala’s LIBOR-based loan would be the first syndicated loan from a company in the region since Dubai requested a suspension on Dubai World’s debt.