Dubai merger boosts state-linked property firm's debt - sources - Reuters:
Islamic bonds issued by Dubai’s Meraas Holding, a state-linked property developer, have shot up in value after the government announced the company would come under the umbrella of the ruler of Dubai’s investment vehicle Dubai Holding.
The bonds, or sukuk, jumped on Tuesday - when the incorporation into Dubai Holding was announced - to close at 92 cents on the dollar from 84.2 cents the previous day, and were at around 94 cents on Wednesday, two market sources said.
The sukuk, which have seen some volatility over the past year and a half, fell sharply in value in March as the coronavirus pandemic and a slump in oil prices hit an already struggling real estate sector in Dubai.
But market sources said the risk of a potential default on the debt would decrease after the change in ownership.
No comments:
Post a Comment