Dubai's next US$10 billion bond may attract wealth funds, central bank, says UBS

Dubai will have to rely on a “club deal” with regional sovereign wealth funds, the United Arab Emirates’ central bank and international investors to raise US$10 billion in a bond issue, Bloomberg reported citing a UBS official.

Dubai plans to raise the second half of its US$20 billion bond program before the end of the year. The first US$10 billion was raised by selling bonds to the U.A.E.’s central bank in February.

“The reality is that Dubai doesn’t have a credit rating yet,” London-based James Sadler, head of Middle East and Africa debt capital markets at Switzerland’s largest bank, said in an interview with Bloomberg.