Dubai has confirmed that it plans to launch a dollar-denominated sovereign bond, the first since the scale of the regional business hub’s debt problems dramatically surfaced last November.
The government said in a statement on Monday that it would launch the bond “shortly”, adding that the proceeds would be used for general budgetary purposes. It did not say how big the bond would be, but bankers say the emirate is looking to raise around $1bn with maturities of up to seven years.
The planned launch comes amid improving sentiment following a recent agreement with creditors to restructure $23.5bn of debts of Dubai World, the government-owned conglomerate.
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