Dubai to Raise $1.93 Billion in Biggest Sukuk Sale

Bloomberg : Dubai will raise about $1.93 billion through the biggest Islamic bond sale from the Gulf region this year, according to two bankers familiar with the transaction.

The Persian Gulf emirate is seeking to borrow about $1.25 billion from its dollar-denominated, five-year fixed-rate Islamic bond, or sukuk, and 2.5 billion dirhams ($680 million) from a local currency floating-rate Islamic note, said bankers who didn’t want to be identified because the deal is not yet complete. Dubai, which today closed its book for the bond sale, attracted about $6.55 billion in orders, they said.

“This is a solid successful deal that sets the tone for anything Dubai Inc. wants to do in the future,” Norval Loftus, the head of convertible bonds and sukuk at Matrix Corporate Capital Ltd. in London, which oversees $2.5 billion in investments.[Read more]