Sunday 8 November 2009

Dubai Repays $1 Billion Civil Aviation Islamic Bond

Dubai’s government refinanced $1 billion worth of Islamic bonds issued by the Dubai Civil Aviation Authority after the emirate tapped the global debt market for the first time in more than a year.

The repayment of the bonds, which matured on Nov. 4., followed a “ successful” issuance of $1.93 billion dollar- and dirham-denominated Islamic bonds, or sukuk, that generated an order book with more than 300 investors placing bids in excess of $6.3 billion, the Department of Finance said in an e-mailed statement today.

Dubai and its state-controlled companies are raising funds after they amassed $80 billion of debt during a four-year real- estate boom that produced the world’s tallest building and largest man-made islands. The global credit crunch raised concern that the second-biggest sheikhdom in the United Arab Emirates may be unable to meet its debt obligations.

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