Dubai is set to finalise a $1.25bn government bond on 29 September, the first time the government has issued a bond since Dubai World started its $23.5bn restructuring process in November 2009.

The bond is expected to be split between a $750m five-year bond priced at 6.75 per cent, and a $500m 10-year bond priced at 7.875 per cent. The pricing is slightly below the initial price guidance given to the market as a result of a strong response from investors for the deal.

Over $4bn of offers were made for the bond, which was arranged by the UK’s HSBC, Standard Chartered, and Germany’s Deutsche Bank.

Dubai last approached the bond markets in October 2009 when it raised $1.93bn, although that deal fell short of the $2.5bn initial guidance given to the market. The five-year deal paid 6.39 per cent.

The government has said that its total debt amounts to AED105.7bn ($28.8bn) at the end of July (MEED 28:9:10).