Published: September 28, 2010
Emirate’s first sovereign issuance since Dubai World crisis.
Dubai’s government is to planning to raise at least US$1bn though issuing five and 10-year bonds in a bid to reinforce its budgets.
The emirate, which has no credit rating, has appointed Deutsche Bank, HSBC and Standard Chartered as joint lead mandated arrangers for issuance.
The bonds, which will be listed on the London Stock Exchange and Dubai Financial Markets, could be launched as early as next week.
This would be Dubai’s first sovereign bond since last October, a month before its Dubai World conglomerate announced it could not repay its debt. Property developer Nakheel has since suffered similar problems and is currently being restructured.
But there has been activity in the market from the emirate this year. In April state-owned Dubai Electricity & Water Authority collected US$1bn from a bond issue.