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Wednesday, 15 June 2011

UPDATE 2-Dubai launches $500 mln 10-year bond -leads | Reuters

The government of Dubai launched a $500 million 10-year bond on Wednesday at the lower end of earlier guidance, lead arrangers said, with the emirate preferring to issue a smaller size in return for a better price.

The bond, expected to price by mid-afternoon London time, launched at 375 basis points over five-year midswaps. Guidance for the bond had been between 375 basis points and 385 basis points over five-year midswaps.

"It is a small bond issue. On the other hand, this also could be good for pricing," said Michael Ganske, Head of emerging market research at Commerzbank in London. "500 million is not a lot."