Dubai Holding Commercial Operations Group (DHCOG), the operating arm of Dubai Holding, has cancelled a tender to repurchase up to £250 million (Dh 1.3 billion) worth of notes, after debt holders priced the bonds in question higher than the company was willing to pay.
DHCOG, which operates a series of businesses including Dubai Properties and the Jumeirah Group, said in a statement on Nasdaq Dubai that it had received offers for £319.55m worth of bonds, with almost all repurchase offers priced significantly above the minimum offer price specified by the company.
“Accordingly, and in the context of the efficient and active management of the outstanding liabilities of [DHCOG] and its group, [DHCOG] has not accepted for purchase any of the tendered notes,” the company said in the statement.
DHCOG launched the tender this month for the buyback of 6 per cent notes due in 2017, with a minimum purchase price of 99 pence to the pound.
The high pricing of debt by bond holders represented “strong confidence in the notes and the group”, it said.
The company last month reported a 25 per cent increase in net profit for 2015 to Dh5.83bn, setting a target for profit to beat Dh10bn by 2020.
jeverington@thenational.ae
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