Dubai Investments revives plan to issue $300m sukuk - The National

Dubai Investments revives plan to issue $300m sukuk - The National:

"Dubai Investments, which holds stakes in more than 40 businesses from property to glass, is reviving a sale of Islamic debt after an emerging-market rout forced it to delay the offer, its chief executive officer said.

A unit of the Dubai-based company obtained a credit rating from Standard & Poor's, allowing it to target lower borrowing costs, Khalid bin Kalban said by phone on July 15. Sukuk sales in the Arabian Gulf plunged last month after Federal Reserve Chairman Ben Bernanke suggested the regulator may start trimming its bond-buying programme if the US economy improves.

Yields on Gulf Cooperation Council Shariah-compliant bonds, which jumped to a 16-month high of 4.23 per cent on June 26, according to HSBC/Nasdaq Dubai indexes, have since fallen to 3.77 per cent on Tuesday after Mr Bernanke pledged stimulus would remain accommodative. That compares with a yield of 4.1 per cent for non-Islamic debt."

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