Stock aerial Dubai skyline
Dubai skyline. Dubai started marketing on Wednesday US dollar-denominated 10-year sukuk, or Islamic bonds, and 30-year conventional bonds, Reuters reported quoting a document. Image Credit: AFP

Dubai: The government of Dubai started marketing a dual-tranche bond on Wednesday, its first sale in public debt markets in six years.

Dubai offered investors about 250 basis points over mid-swaps for 10-year sukuk, or Islamic bonds, and about 4.375% for 30-year conventional bonds, according to a document issued by one of the banks leading the deal and seen by Reuters.

The transaction is expected to close later on Wednesday.

Dubai has budgeted a $3.2 billion deficit this year, a bond prospectus showed. It also showed that the government's direct debt amounted to nearly $34 billion at the end of June.