Business | Economy

Dubai planning to unveil $6.5b bond

The latest programme, to be finalised in the next few days at the end of its roadshow, comes as the cost of insuring Dubai's debt falls towards a recent one-year low.

  • By Staff Reporter, Gulf News
  • Published: 00:00 October 26, 2009
  • Gulf News

  • Image Credit: Gulf News

Dubai: The government of Dubai is set to launch a fresh borrowing programme worth $6.5 billion (Dh23.8 billion), news agencies reported, quoting the offer document and bankers who attended the roadshows in Abu Dhabi and Dubai.

The latest programme, to be finalised in the next few days at the end of its roadshow, comes as the cost of insuring Dubai's debt falls towards a recent one-year low.

This brightens the prospect for the Dubai government which is in the middle of restructuring the debts of some state-owned firms.

Quoting a banker who attended the roadshows Reuters reported on Sunday that the Dubai government had launched a four-billion euro medium term note programme as well as a $2.5 billion Islamic bond, or sukuk, used for general corporate activities, including infrastructure.

"The meeting was full. They seem to be saying everything is going okay. These concerns seem to be ironed out," Reuters quoted the banker as saying.

Gulf News tried to contact Government of Dubai's Department of Finance, but senior officials were not available for comments.

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