Dubai Sells First Bonds in 15 Months With $750 Million Sukuk (3)
Dubai tapped capital markets for the first time in more than a year with the sale of $750 million of 15-year Islamic bonds as the emirate seeks to pay debt and finance its budget amid a property-market recovery. The Dubai government’s securities will reportedly price to yield 5 percent. The price Dubai paid for the sukuk indicates a significant improvement in the credit quality. The sale comes after Abu Dhabi agreed last month to roll over $20 billion of debt for five years, helping push Dubai’s credit risk to 165 basis points on April 4. Dubai Islamic Bank PJSC (DIB), Emirates NBD Capital Ltd., HSBC Holdings Plc (HSBA), National Bank of Abu Dhabi PJSC and Standard Chartered Plc managed the sale.
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