Dubai: The Government of Dubai, acting through the Department of Finance, has raised a further $5 billion as part of its $20 billion long term bond programme launched at the beginning of 2009.

The amount issued was determined by the Emirate’s current needs and obligations.

The proceeds are managed by and further strengthen the financial resources of the Dubai Financial Support Fund (DFSF), which was established with the specific purpose of providing liquidity on a commercial basis to Government and Government-Related Entities undertaking projects deemed to be of strategic importance within Dubai that contribute towards the overall economic development of the Emirate.

The $5 billion tranche was fully subscribed equally by National Bank of Abu Dhabi and Al Hilal Bank and has been divided according to a schedule that specifies drawdown amounts and dates that are aligned to the DFSF’s objectives.

The first amount scheduled to be drawn down is $1 billion and will be split equally between a conventional bond issuance to NBAD and a sukuk to Al Hilal Bank.

In attendance at the signing ceremony were Abdulrahman Al Saleh Director General of The Department of Finance, and Nasser Ahmad Khalifa Al Suweidi, Chairman of National Bank of Abu Dhabi and Ahmad Ateeq Al Mazroui, Chairman of Al Hilal Bank.