Dubai wealth fund sells $600mln in long 5-year bonds - document

Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JP Morgan and Standard Chartered have been hired to arrange the deal

  
Panoramic View of Dubai Skyline at Sunrise. Image used for illustrative purpose.

Panoramic View of Dubai Skyline at Sunrise. Image used for illustrative purpose.

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DUBAI - Investment Corporation of Dubai (ICD), the Dubai government's main investment arm, sold $600 million in long five-year bonds at 275 basis points over mid-swaps, a document showed on Wednesday.

ICD began marketing the bonds at around 300 basis points over mid-swaps earlier on Wednesday and received more than $1.1 billion in orders, according to the document issued by one of the banks leading the deal.

Issuers from the Gulf are lining up to take advantage of low interest rates to plug finances hit by cheap oil and the coronavirus pandemic, with Oman also selling bonds on Wednesday in its first issuance since July last year.

The government of Dubai sold $2 billion in bonds last month in its first public debt issuance since 2014 amid a sharp economic downturn that has revived concern over its finances and memories of its 2009 debt crisis. 

Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JPMorgan and Standard Chartered arranged ICD's deal.

(Reporting by Yousef Saba and Davide Barbuscia; Editing by Jan Harvey and Gareth Jones) ((Yousef.Saba@thomsonreuters.com; +971562166204))

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