Several Dubai entities have begun talks with bankers regarding issuing bonds in the near future, a senior Dubai-based banker at Standard Chartered says.
The talks come as a surprise because many investors are increasingly nervous about the rising cost of debt, tight refinancing schedules and potential losses on portfolio investments at many Dubai-owned companies such as Dubai World and Dubai Holdings. “We are in talks with several Dubai entities here regarding bonds,” said Hassan Jarrar, the managing director who heads Standard Chartered’s origination and client coverage in the UAE. “We are currently engaged on ratings and bond issuances.”
By the end of the year Dubai entities must repay US$6.5 billion (Dh23.87bn), which is part of an overall estimated $85bn of debt.
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