Dubai Said to Plan Sale of 15-Year Sukuk as Early as Today - Bloomberg

Dubai Said to Plan Sale of 15-Year Sukuk as Early as Today - Bloomberg:



"Dubai, the Persian Gulf emirate whose benchmark stock index is the best performing in the world this year, plans to sell 15-year Islamic bonds as early as today as it seeks funds to pay debt and bridge a budget deficit.



The Dubai government may price the securities to yield 5 percent to 5.125 percent, according to four people familiar with the matter, who asked not to be identified because the information is private. The sukuk will be of a benchmark size, the people said, which usually raises at least $500 million.



Dubai, the second-biggest of seven states in the United Arab Emirates, has a $1.25 billion sukuk maturing in November, according to data compiled by Bloomberg. The emirate, whose $20 billion debt to Abu Dhabi was rolled over for another five years last month, expects a 882 million-dirham ($240 million) budget deficit in 2014, state-run WAM news agency reported in November."



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