Dubai's government, buoyed by returning investor sentiment and the falling cost of borrowing international capital, is trying to lure investors with a potential 10-year dollar bond with a five-year put option, banking sources said on Tuesday.
The bond structure, unusual in the region and crafted by Dubai's Department of Finance, is aimed at allowing bondholders to redeem their investment before maturity at full value, the sources said. In return, bondholders would settle for a lower yield .
"It's a very innovative method to tap into market now for Dubai," said a banking source familiar with the matter.
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