We’re not in 2009 any more, Toto. Dubai’s second sovereign bond issue since its debt crisis and near-default went ahead without a hiccup on Thursday, with the $1.25bn, two-tranche Islamic sukuk more than 3.5 times oversubscribed by institutional investors.
When the emirate announced in November 2009 that it would seek a debt standstill from creditors of state-owned Dubai World – and made clear there was no guarantee of sovereign support for the state-backed enterprises that drive much of its development – some thought it would be a long time before international lenders would again trust the city with their money.
In reality, it was less than a year before Dubai made its way back into the debt markets, with both a $1.25bn sovereign bond and a $500m convertible bond by government-owned Emaar Properties being issued on the same day in late September, 2010.
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