Dubai's second bond tranche to get subscribers

 Dubai: The second part of Dubai’s $20 billion (Dh73.5 billion) bond programme will generate a lot of investor interest and “receive several subscribers,” His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, told investors on Monday.

The subscribed amount will be used to settle Dubai’s obligations in the coming years, Shaikh Mohammad told the audience at the Mena & Frontiers Conference in Dubai.

“The second tranche of the bond programme will receive subscribers and will be used to settle Dubai’s obligations in future,” he said.

Shaikh Mohammad’s comments suggest that the second tranche might not be completely subscribed by the UAE Central Bank.

The bank bought the first $10 billion tranche. The Government of Dubai issued a two-tranche, $1.93 billion sukuk on 28 October 2009, following a highly successful international roadshow which generated a large order book with over 300 investors placing orders in excess of $6.3 billion equivalent.