Tuesday 27 October 2009

Dubai's $6.5B Bond Program Could Be Priced At 6% - Rasmala

Debt-laden Dubai government's latest $6.5 billion bond program could yield 6%, higher pricing than seen for similar bonds issued by oil-rich Abu Dhabi, according to a senior executive at Dubai-based investment bank Rasmala.

Eric Swats, head of asset management at Rasmala, said in a radio interview with Dubai Eye Monday that he expects investor interest in the debt if its priced at around 6%.

The Government of Dubai issued a preliminary prospectus on Oct. 21 to raise $4 billion through a Euro Medium-Term Note, or EMTN, program for "infrastructure, financing and general budgetary purposes," according to a copy of the document seen by Zawya Dow Jones.

At the same time Dubai's Department Of Finance, through a Cayman Islands entity known as Dubai DOF Sukuk Ltd., issued a prospectus to possibly raise $2.5 billion in Islamic bonds, or sukuk.

The Dubai Department of Finance is half way through a round of global roadshows that began last week in Hong Kong to market its debt to investors. Next stops are London and Frankfurt this week.

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