Dubai raises US$1.25bn

Dubai raises US$1.25bn

Published: April 26, 2012

Sukuk almost four times oversubscribed.

Dubai has raised US$1.25bn though issuing an Islamic bond to meet its budget deficit and to refinance its debt.

The bond was almost four times oversubscribed receiving orders from more than 260 investors, including fund managers, insurance companies and banks.

The bond was issued in two tranches with US$600mn raised over five years on a 4.9% coupon and US$650mn over 10 years.

This is the emirate’s first visit to the bond markets since June 2011, when it raised US$500mn.

Citi, HSBC, National Bank of Abu Dhabi and Dubai Islamic Bank were appointed joint lead managers for this latest bond. 

Abu Dhabi Islamic Bank, Barwa Bank and ENBD were co-lead managers.