Government of Dubai successfully issues dual-tranche bond totalling US$1.25b

Dubai, Sept 30, 2010 (WAM)- The Dubai Government Media Office, 29 September 2010- The Government of Dubai, acting through the Department of Finance, yesterday announced that it has successfully priced a US$1.25 billion dual-tranche bond, which was four times oversubscribed demonstrating strong investor appetite. The bond has a yield of 6.70% on a US$500 million five-year tranche and 7.75% on a US$750 million ten-year tranche. These bonds were priced at par.
This issuance is part of the updated Euro Medium Term Note Programme, which was established in April 2008. All proceeds of the bond will be used for general budgetary purposes.
The dual-tranche bond sale was extremely well received globally and generated a large order book with over 370 orders of approximately US$5 billion. Orders were made by a wide range of high quality fixed income investors, including fund managers, insurance companies and banks. Deutsche Bank, HSBC and Standard Chartered Bank were Joint Lead Managers for the issue.