Two elephants also drowned in rapidly rising flood waters in north of popular tourist hotspot Chiang Mai
asia2 hours ago
One source at the arrangers of the roadshow — run by HSBC and Mitsubishi UFJ — declined to confirm whether Dubai might issue a bond later this year.
But a fund manager familiar with the presentations said they had pointed to a 7-10 year sukuk, and a senior fixed income trader said the issue could come in the third quarter.
“The arrangers said the reception was very good, they are talking about a 7-10 year sukuk,” said one European fund manager.
Dubai went on a non-deal roadshow, meeting non-Islamic investors in Switzerland, France, Germany and Britain between June 4-10, in a mixture of presentations and one-to-one meetings, investors said.
The presentations were designed to show Dubai’s general macro-economic outlook, without any specific deal plans, a source at one of the arrangers said.
“There was a very strong reception,” the source added. But pressed on whether a bond deal was in the works, the source declined to comment.
Dubai issued a five-year dollar and dirham two-tranche sukuk in Oct 2009, shortly before state-owned conglomerate Dubai World [DBWLD.UL] rocked markets with a standstill request on billions in debt payments.
The Islamic bond has been strengthening after Dubai World announced a well-received restructuring last month. Dubai’s $1.25 billion 5-year tranche was trading at 96 on Monday, giving a yield of 7.48 per cent.
A sukuk would likely be offered at more generous pricing than a conventional bond, providing a carrot for investors, fund managers said.
“I reckon there could be an issue sooner than later,” said one fixed income head familiar with Dubai’s presentation. “Third quarter now looks more of a possibility,” he said.
Dubai’s 2010 budget deficit was projected at Dh6 billion ($1.63 billion), the government said in January, but Dubai officials were indicating a slightly smaller deficit of $1-1.5 billion, the European fund manager said.
“Dubai could issue $1 billion at least,” he added. However, issuance may be delayed by Dubai’s need to get a credit rating, a prerequisite for many investors to buy international debt.
The United Arab Emirates has a rating of Aa2 from Moody’s but Dubai does not have its own rating.
Two elephants also drowned in rapidly rising flood waters in north of popular tourist hotspot Chiang Mai
asia2 hours ago
All eyes are on the mayoral vote in Sao Paulo where three candidates are running neck and neck, setting the stage for a second-round runoff on October 27
americas2 hours ago
Family credit in Arab countries accounted for 38% of total private sector credit at the end of 2023
finance2 hours ago
Ian McConville was summoned for his country's repeated bias, including on Iran's response to what it called 'the Zionist regime,' meaning Israel
mena2 hours ago
Project is already 60% complete
realty2 hours ago
Polls have the Republican and Democrat candidates neck and neck, fuelling a high-cost scramble for each and every wavering voter in the seven key states
americas2 hours ago
Trump, who lost to Biden in 2020 and falsely claimed the elections were unfair, faces Harris in the November 5 elections
americas2 hours ago
This comes after the President earlier ordered an urgent relief aid package worth $100 million
uae3 hours ago