Wednesday, Jun 15, 2011
DUBAI (Zawya Dow Jones)--The price whisper for the government of Dubai's planned U.S. dollar-denominated, benchmark-sized bond is 350 basis points over five-year mid swaps, a banker familiar with the matter said Wednesday.
The new bonds are of 10 years maturity with a five-year put option under its existing Euro Medium Term Note, or EMTN, program and will be listed on the London Stock Exchange and the Dubai Financial Market. "Execution is expected Wednesday," the banker, who declined to be identified, told Zawya Dow Jones.
Emirates NBD, HSBC, RBS and UBS are book runners on the new issue, the banker added.
Earlier this month Dubai flag carrier Emirates Airline issued a five-year, $1 billion bond with a spread of 330 basis points over five-year mid swaps.
A series of meetings with fixed-income investors was scheduled in London on Monday and Tuesday, with the Dubai bond expected to launch and price this week, subject to market conditions, the banker said.
The government of Dubai earlier this week, in its base prospectus, said it increased the size of its EMTN program to $5 billion, from $4 billion previously, as the troubled state looks to raise more debt to bridge its budget deficit and finance growth.
-By Nikhil Lohade, Dow Jones Newswires, +9714 446 1694, nikhil.lohade@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
15-06-11 0442GMT
