Government to list sukuk on Dubai and London bourses
The government of Dubai will issue a $2.5bn Islamic bond by the end of October, which will be priced at between 350 and 400 basis points above the mid-point of bids and offers on similar bonds, according to bankers close to the deal.
The Department of Finance, which is leading the issue, is now marketing the sukuk to investors following a roadshow in several international markets. The Dubai government will list the five-year sukuk on the London Stock Exchange and Dubai Financial Market.
A Cayman Islands entity created by the Dubai Department of Finance will issue the sukuk. Dubai Islamic Bank and Emirates NBD, the UK’s Standard Chartered Bank, Japan’s Mitsubishi UFJ, and Switzerland’s UBS will arrange the deal.
Dubai’s government and the local companies that it owns or supports are trying to refinance debts built up during the economic boom. The Dubai Civil Aviation Authority is trying to refinance a $1bn sukuk while local real estate developer Union Properties is trying to restructure a $749m loan (MEED 14:10:09).