Having been almost bankrupted by a crippling short-term debt mountain just over four years ago Dubai is not only back in the bond market but borrowing at incredibly low interest rates despite still being unrated by the credit agencies.
This week the emirate successfully tapped bond markets at lower interest rates than those currently available to Italy. A $750 million sale of 10-year Islamic bonds sold at a yield of just 3.875 per cent while a $500 million issue of conventional 30-year bonds was also placed at low rates after institutional investors asked for longer dated paper.
Could low-yield, long-term bonds and higher inflation be the final solution to Dubai’s debt mountain? « ArabianMoney
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