At the lowest interest ... and within two tranches extending for 10 years and 30 years

Dubai floats $ 2 billion in sukuk and bonds

Abdul Rahman Al Saleh: “The issuance was in line with the determinants of the fiscal policy that the emirate follows, based on financial sustainability.”

Yesterday, the Dubai government, represented by the Department of Finance, officially announced the completion of an issuance process consisting of 10-year Islamic sukuk worth one billion dollars at a profit rate of 2.763%, and 30-year government bonds worth one billion dollars at an interest of 3.90%.

The Director General of the Department of Finance of the Government of Dubai, Abdul-Rahman Saleh Al Saleh, expressed in a statement that he was pleased with the success of Dubai in this issuance, indicating that the department was able to obtain the lowest interest rate for bonds extending for 30 years, and the lowest profit for bonds extending for 10 years, in the history of the government Dubai.

He said, "This issuance was in line with the determinants of the financial policy, which the emirate pursues based on financial sustainability, and to continue spending on vital infrastructure projects, while making sure to respond to the requirements of the current stage contained in the generalization of budget priorities issued at the beginning of the second quarter of this year." He stressed the efficiency of the government's financial solvency, and the continued high investor confidence in the financial scene of the Dubai government at the global level.

For his part, Head of Investors Affairs at the Finance Department, Rashid Ali Bin Abboud, said that "the value of the order book for local and international investors exceeded $ 10 billion, five times the target value for issuance."

He added that «the strength of demand and the breadth of interest from various regions of the world reflect the firmness of international investors’ confidence in the strength of the emirate’s economy, and the distant vision of its financial strategy.

And he indicated that “global investors made up 84% of the total investors in the long-term bonds segment (30 years),” adding: “The continuous positive interaction of the Dubai government with global investment markets in recent years has played an important role in the success of bond and sukuk issuances, which is what has been renewed. In this issue, which achieved a low price for both interest and profit ».

The Dubai government has authorized: Emirates NBD, First Abu Dhabi Bank, HSBC Bank, Dubai Islamic Bank, and Standard Chartered Bank, to manage the issuance process.

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