Tuesday, 3 May 2011

Dubai Road-Toll Fund-Raising Plan Said to Get $1 Billion Bids, Tops Target - Bloomberg

Dubai received at least $1 billion in bids for a program to raise financing backed by future road-toll receipts, more than the government’s target, said two bankers familiar with the plan.

There was strong interest from international banks, financial institutions and pension funds for the $800 million securitization program, one of the bankers said. The six-year financing may be priced at 3.5 percentage points over the London interbank offered rate, both bankers said. They declined to be identified because the transaction hasn’t been completed yet.

Dubai, the Persian Gulf business hub battling a debt crisis, said April 7 it hired Citigroup Inc. (C), Dubai Islamic Bank PJSC (DIB), Emirates NBD PJSC (EMIRATES) and Commercial Bank of Dubai PSC (CBD) to raise the financing to help fund transport projects. The banks have put up the money for the dual-currency transaction and are offering portions of the securities to other investors. The offer includes both conventional and Islamic portions.

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