The government of Dubai’s department of finance has raised $750m through a 15-year Islamic bond or sukuk.

The deal was more than three times oversubscribed and was priced at a profit rate of 5 per cent.

It is the first 15-year sukuk to be issued globally, according to the department of finance, and will set a new benchmark for Dubai companies looking to raise long-term financing.

The positive market reaction to the issuance suggests that investor confidence in Dubai is strengthening having been damaged by the financial crisis and property crash in 2009.

The issuance is part of a trust certificate issuance programme set up in October 2009 and updated in 2013. The proceeds of the issuance are to be used for “general budgetary purposes and refinancing”, says the finance department.

A total of 79 investors placed orders of more than $2bn with a variety of banks, insurance companies and fund managers across the globe participating in the issuance.

Dubai Islamic Bank, Emirates NBD Capital, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank were the joint lead managers and bookrunners for the sukuk.

The last time Dubai tapped the capital markets was in January 2013 when it raised $1.25bn from selling 10 and 30-year bonds.

The 10-year bonds were issued under the trust certificate programme at a profit rate of 3.875 per cent, and were used for refinancing and to fund the expansion of Dubai International airport.

The 30-year bonds were issued under the government’s euro medium term note programme and both issuances were listed on the Dubai Stock Exchange.