2.02 PM Thursday, 28 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:57 06:11 12:27 15:53 18:37 19:51
28 March 2024

$1.25bn Dubai bond issue oversubscribed

Emirate may raise bond size to $1.25bn, says fund manager. (REUTERS)

Published
By AFP

Dubai has successfully issued a $1.25 billion dual-tranche bond that was four times oversubscribed, demonstrating "strong investor appetite", the government said on Wednesday.

The first $500 million tranche, which matures in five years, carries a yield of 6.7 per cent, with the second $750m tranche matures in 10 years and yields 7.75 per cent, the government media office announced.

It said the bond had successful pricing and was "four times oversubscribed, demonstrating strong investor appetite".

Abdulrahman Al Saleh, Director General of the Department of Finance, said: "We are very pleased at the positive market reception to the bond offering, which demonstrates increased investor confidence in the strong long-term value proposition of the emirate of Dubai.

"The government has taken prudent measures to control costs and manage its budget deficit and this successful issuance provides Dubai with additional liquidity for general budgetary purposes."

The Government of Dubai, acting through the Department of Finance, has mandated Deutsche Bank, HSBC and Standard Chartered Bank as Joint Lead Managers for the bond.

The bond will be offered under the Dubai government’s Euro Medium Term Note Programme, which was established in April 2008.