One of the more curious revelations in Dubai’s recent government bond prospectus was a previously unknown $1bn loan from China Construction Bank.
Disclosure of the loan underlines the increasingly close ties between the Gulf states and Asia, a trend that is apparent in recent bond sales, where Asian investors have become markedly more significant.
More than a third of investors in Dubai’s recent $1.25bn sovereign bond issue – divided into five-year and 10-year tranches – were based in Asia. In the dollar-denominated tranche of Dubai’s October 2009 Islamic bond, only 17 per cent of investors were Asian.
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