Dubai wealth fund expected to sell $500 mln in long 5-yr bonds

Investment Corporation of Dubai (ICD), the Dubai government's main investment arm, is expected to sell $500 million in long five-year bonds at 275 basis points over mid-swaps, a document showed on Wednesday. ICD began marketing the bonds at around 300 basis points over mid-swaps earlier on Wednesday and received around $1.3 billion in orders, according to the document issued by one of the banks leading the deal, which is due to launch later in the day.


Reuters | Updated: 21-10-2020 18:39 IST | Created: 21-10-2020 18:39 IST
Dubai wealth fund expected to sell $500 mln in long 5-yr bonds

Investment Corporation of Dubai (ICD), the Dubai government's main investment arm, is expected to sell $500 million in long five-year bonds at 275 basis points over mid-swaps, a document showed on Wednesday.

ICD began marketing the bonds at around 300 basis points over mid-swaps earlier on Wednesday and received around $1.3 billion in orders, according to the document issued by one of the banks leading the deal, which is due to launch later in the day. Issuers from the Gulf are lining up to take advantage of low interest rates to plug finances hit by cheap oil and the coronavirus crisis, with Oman also selling bonds on Wednesday in its first issuance since July last year.

The government of Dubai sold $2 billion in bonds last month in its first public debt issuance since 2014 amid a sharp economic downturn that has revived concern over its finances and memories of its 2009 debt crisis. Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JPMorgan and Standard Chartered have been hired to arrange ICD's deal.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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