Monday 27 September 2010

Dubai, Qatar Islamic Revive Gulf Debt Sales to Year High: Islamic Finance - Bloomberg

The Dubai government and Qatar Islamic Bank SAQ are among issuers leading the biggest Persian Gulf borrowing push since the fourth quarter, a sign Dubai World’s debt restructuring is reviving confidence in the region.

Dubai may sell $1 billion next week in its first bond sale in a year, two bankers familiar with the plan said Sept. 23. Qatar Islamic Bank plans to offer its first dollar sukuk and will start meeting investors in the Middle East, Asia and Europe, it said last week. Chief Executive Officer Salah Mohammed Jaidah said May 19 the bank may issue as much as $750 million of notes that comply with the religion’s ban on interest.

The sales would push Gulf issuance to more than $9 billion in the third quarter, the most since the $16 billion raised in the final three months of 2009, according to data compiled by Bloomberg. The extra yield investors demand to hold Dubai’s sovereign dollar sukuk rather than Malaysia’s has narrowed 46 basis points to 371 this quarter as the region recovered from the worst financial crisis since the 1930s.

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