Savvy as a market trader, Dubai knows when to strike bargain. With everyone mumbling that “Dubai is back” the government realised that now is the time to borrow.
So on Tuesday, the emirate sold $1.25bn in Islamic bonds, to appeal to a broad spectrum of buyers from the Middle East, Asia and beyond. Bankers said Dubai issued $750m of 10-year Islamic debt at 3.875 per cent and $500m of 30-year notes at 5.375 per cent.
The sale, its first since last April, is yet another sign that investors have forgiven the emirate for the roller coaster ride of 2009 when it received a $20bn bailout underwritten by its oil-rich neighbor Abu Dhabi, to avert a default.
Dubai is back? Time to borrow | beyondbrics
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