Dubai will issue US$5b in new bonds
Source: Bloomberg News |
June 13, 2011, Monday
|
Print Edition
Print Edition
DUBAI set up a US$5 billion bond program to help bridge its budget deficit and fund investments as yields fell to the lowest in at least two years this month.
The Persian Gulf sheikhdom will use proceeds from the dollar-denominated bonds for infrastructure spending and "budgetary purposes," it said yesterday in a prospectus distributed by the Regulatory News Service.
Yields on Dubai's US$1.25 billion of sukuk bonds due in 2014 fell to the lowest level since their sale in October 2009 to 4.573 percent on June 1 from as high as 6.69 percent on January 31, according to data compiled by Bloomberg News. The yield was last at 4.76 percent on Friday.
"There is likely to be solid demand for such a deal," Chavan Bhogaita, head of the markets strategy group at National Bank of Abu Dhabi PJSC, said in an e-mail yesterday. "There has been a marked improvement in investor sentiment toward the Dubai credit story and credit default swaps spreads demonstrate this clearly."
Dubai is returning to the bond market for the first time in eight months after the government-owned Emirates, the world's biggest airline by international traffic, raised US$1 billion from the sale of five-year bonds on June 1. The bonds were priced to yield 330 basis points over the benchmark mid-swap rate. Emirates and Dubai's government have no credit ratings.
Dubai's budget gap is set to narrow to US$1 billion this year.
The Persian Gulf sheikhdom will use proceeds from the dollar-denominated bonds for infrastructure spending and "budgetary purposes," it said yesterday in a prospectus distributed by the Regulatory News Service.
Yields on Dubai's US$1.25 billion of sukuk bonds due in 2014 fell to the lowest level since their sale in October 2009 to 4.573 percent on June 1 from as high as 6.69 percent on January 31, according to data compiled by Bloomberg News. The yield was last at 4.76 percent on Friday.
"There is likely to be solid demand for such a deal," Chavan Bhogaita, head of the markets strategy group at National Bank of Abu Dhabi PJSC, said in an e-mail yesterday. "There has been a marked improvement in investor sentiment toward the Dubai credit story and credit default swaps spreads demonstrate this clearly."
Dubai is returning to the bond market for the first time in eight months after the government-owned Emirates, the world's biggest airline by international traffic, raised US$1 billion from the sale of five-year bonds on June 1. The bonds were priced to yield 330 basis points over the benchmark mid-swap rate. Emirates and Dubai's government have no credit ratings.
Dubai's budget gap is set to narrow to US$1 billion this year.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
