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Dubai prices two-part $1.25 bln bond offering
January 23, 2013 / 5:35 AM / 5 years ago

Dubai prices two-part $1.25 bln bond offering

DUBAI, Jan 23 (Reuters) - The government of Dubai priced a two-tranche bond sale late on Tuesday, comprising both conventional and Islamic notes.

The $500 million 30-year conventional bond, maturing January 2043, priced below par at 98.148 to result in a yield of 5.375 percent. The bond offers a coupon of 5.25 percent.

Dubai’s $750 million 10-year Islamic bond, or sukuk, maturing January 2023, priced at par, and carries a profit rate of 3.875 percent.

Both portions of the debt sale were substantially oversubscribed, allowing the emirate to secure some of the lowest borrowing costs available to it.

Dubai Islamic Bank (DIB), Emirates NBD, HSBC Holdings, National Bank of Abu Dhabi and Standard Chartered were mandated lead managers on the sukuk, while the same banks, minus DIB, were bookrunners on the 30-year bond.

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