FINANCIAL NEWS

Dubai to refinance debt through bond issuance

17 Sep 2012

(MENAFN) Dubai unveiled plans to refinance part of USD1.8 billion debt, due in April 2013, through bond issuance, local newspaper Al Bayan reported.

Al Bayan cited Abdulrahman Al-Saleh, director general of the Dubai Department of Finance, as saying that the emirate was not in a hurry to sell debt.

Future bond issuance could support expansion of Dubai’s aviation sector, he added.

Dubai last sold sovereign debt in April 2012, through a USD1.25 billion, two-tranche Islamic bond issue aimed at covering its budget deficit and refinancing debt.

Gulf bonds saw a solid growth in the secondary market this year, as pressure on global interest rates eases.

This has raised expectations that regional borrowers could take advantage of the favourable conditions by issuing debt in the near future.

Al-Saleh said that Dubai is witnessing positive growth rates in various sectors during the first half of 2012.

Earlier this month, the UAE central bank forecasted Dubai’s economy to grow by 4 percent or more this year.

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