DUBAI — Dubai Holding Commercial Operations said on Friday it raised $2.5 billion in its debut bond sale, after getting offers worth five times the amount, with most orders coming from Britain.
"The order book registered over five times interest from more than 265 accounts," the company said in a statement.
"The book was highly diversified with 60 per cent of orders coming from the UK, Benelux 8 per cent, Germany 8 per cent, Italy 6 per cent, Asia 5 per cent, Switzerland 4 per cent, Middle East 4 per cent, France 2 per cent, Scandinavia 2 per cent and other 2 per cent," the statement said. Banks said on Thursday that Dubai Holding Commercial, which has telecom, real estate and hotel businesses, sold the bonds in three tranches: $500 million for five years priced at 42 basis points over LIBOR, 750 million euros ($974 million) maturing in seven years at 59 basis points over mid swaps and 500 million pounds ($985 million) for 10 years at 105 basis points over gilts.
"Our transaction demonstrates large international investor demand for Dubai and regional bonds. Our bond will serve as a liquid benchmark for future issuance out of Dubai and the region," Dubai Holding's Chief Executive Fadel Al Ali said in the statement.
HSBC Holdings and JP Morgan Chase & Co. arranged the sale. Dubai Holding Commercial owed 3.8 billion dirhams ($1.04 billion) as of Oct. 31, according to the bond prospectus which said group profits tripled in 2005 to 1.61 billion dirhams.