The Dubai Government Media Office, 29 September 2010- The Government of Dubai, acting through the Department of Finance, today announced that it has successfully priced a $1.25 billion dual-tranche bond, which was four times oversubscribed demonstrating strong investor appetite. The bond has a yield of 6.70% on a $500 million five-year tranche and 7.75% on a $750 million ten-year tranche. These bonds were priced at par.
This issuance is part of the updated Euro Medium Term Note Programme, which was established in April 2008. All proceeds of the bond will be used for general budgetary purposes.
The dual-tranche bond sale was extremely well received globally and generated a large order book with over 370 orders of approximately US$5 billion. Orders were made by a wide range of high quality fixed income investors, including fund managers, insurance companies and banks.
H.E. Abdulrahman Al Saleh, Director General, Department of Finance, said: "We are very pleased at the positive market reception to the bond offering, which demonstrates increased investor confidence in the strong long-term value proposition of the Emirate of Dubai. The Government has taken prudent measures to control costs and manage its budget deficit and this successful issuance provides Dubai with additional liquidity for general budgetary purposes."
Deutsche Bank, HSBC and Standard Chartered Bank were Joint Lead Managers for the issue.
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For further information, please contact:
Brunswick Group
Azadeh Varzi
avarzi@brunswickgroup.com
+44 7974 982 355
Assheton Spiegelberg
aspiegelberg@brunswickgroup.com
+9714 365 8260
© Press Release 2010
