FINANCIAL NEWS

Dubai to launch dollar-denominated bond

28 Sep 2010

(MENAFN) Dubai’s Department of Finance said in a statement that the emirate is going to issue a dollar-denominated sovereign bond and that it appointed a number of banks for the bond sale, Khaleej Times reported.

The size of the bond is not indicated but reports said that it could be worth $1 billion and attributed to legal reasons, the bonds are not going to be for sale in the United States, Japan, Australia or Canada.

According to the department, the response for the bond, Dubai?s first debt sale since last year?s debt crisis, will help assess the level of investor sentiment in Dubai’s economy.

The fixed-coupon bond submission is part of Dubai?s $ 5.2billion medium term note, or EMTN, program, which was established in April 2008.

Dubai?s most recent sovereign bond sale was launched in October 2009. Dubai?s companies face some $30 billion in bond and loan maturities in the next two years alone.

Dubai Government has made a detailed financial exposé ©n a brochure to sustain its $4 billion bond program.

Dubai Government?s direct debt was $29 billion at the end of July.

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