UAE Central Bank likely to buy more Dubai bonds

Abu Dhabi, Aug 4, 2009 (WAM)- The Central Bank of the United Arab Emirates probably will be among the biggest buyers of more bonds being sold by the Dubai government, Barclays Capital said.
According to the report by "Bloomberg" the Central Bank may subscribe alongside a few Dubai-based banks, Barclays Capital economist Alia Moubayed said in e-mailed comments. Central Bank Governor Sultan bin Nasser Al Suwaidi said on July 15 the UAE may buy part of Dubai's bond sale after purchasing the first tranche in February.
Dubai is raising funds to help state-controlled companies through the global credit crisis and has issued a decree setting up a company to manage the proceeds, the emirate's Department of Finance said last month.
Dubai has already spent at least half of the US$10 billion (Dh36.7 billion) raised from the sale of five-year bonds in February to the UAE Central Bank. The sale was part of a US$20 billion medium-term note programme and the second tranche is expected to be sold before the end of the year.
The UAE Central Bank wasn't immediately available for comment on whether it will be buying more Dubai bonds. –