Dubai has already distributed more than half of the funds from its $10bn bond and will be issuing the second $10bn tranche within this year, a top government official told DubaiEye Radio, which is operated by Arabian Radio Network, an Emirates Business sister company.
Nasser Al Shaikh, Director General of Dubai's Department of Finance, said the $10bn bond, fully subscribed by the UAE Central Bank in February, has been loaned to several quasi-government companies at a marginal interest rate.
"All the support that we extend to is in the form of loans, the tenor of which is a bit shorter than our commitment to the central bank to ensure that we have the money paid to us before we repay it to the central bank. The interest rate is four-plus per cent, which is just a margin addition to cover our administrative costs," Al Shaikh said.
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