The successful syndication together with the re-payment of the balance of $365 million to investors demonstrates the confidence of the Dubai Government’s outlook and its continuing ability to manage re-financing requirements as they fall due.
Nasser Al-Shaikh, Director General of the Dubai Department of Finance, said: “The encouraging response received for this syndication illustrates the strong confidence of investors in Dubai’s economy. The Government of Dubai will continue to finance infrastructure projects with long-term borrowing as part of it’s ongoing long-term debt management strategy”.
The multicurrency Ijara facility consisted of a floating rate tranche of Dh1.7 billion, $100million and euro 52million. The profit rate on the facility would be three-month USD LIBOR / EIBOR/ EURIBOR plus three per cent, payable on a quarterly basis. The facility would be paid back in 3 equal semi-annual installments beginning in April 2010.
Dubai Islamic Bank acted as the coordinator for the facility. Dubai Islamic Bank, Emirates NBD, Noor Islamic Bank and Industrial & Commercial Bank of China (ICBC) and West LB acted as Mandated Lead Arrangers and Bookrunners for the transaction. Mashreq Bank, Union National Bank and Commercial Bank of Dubai were the other participating banks. The notes are a senior obligation of the Government of Dubai.