Demand stampede for Investment Corporation of Dubai bonds | The National

Demand stampede for Investment Corporation of Dubai bonds | The National:



"Bonds sold earlier this month by the Investment Corporation of Dubai (ICD) sparked demand three times in excess of what was offered, signalling that investors have put debt woes behind them as the UAE’s economy flourishes.



ICD’s sale, the first for the Dubai government investment giant, also comes amid renewed interest in emerging market debt, an asset class that has been battered by the tapering of the US Federal Reserve’s monetary stimulus and political and economic instability in countries such as Russia, Brazil and Indonesia.



The spectre, however, of a sustained period of low interest rates in the US and Europe has attracted investors looking for higher-yield and longer-bond tenures. 




ICD, which owns stakes in companies including Emaar Properties and Emirates Airline, said it sold US$700 million of sukuk with a 10-year tenor and profit rate of 3.508 per cent and $300 million of conventional 10-year bonds with a coupon of 4.625 per cent. More than 150 investors took part in the sale on May 14."



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