The Government of Dubai announces the successful closing of its inaugural 1.5 billion UAE Dirhams bond issue

The Issue is the first ever by the Government of Dubai and the first ever fixed interest rate bond to be listed in the United Arab Emirates. Listing will take place on Thursday 29th at the Dubai Financial Market.

The final pricing was set at 47 basis points over the 5 year USD swap rate to give a coupon of 3.11% .The issue was oversubscribed 1.5 times reflecting a healthy demand from the market despite the recent sharp fall in USD interest rates. Despite the significant demand the issue was not increased in size.

The Joint Lead Arrangers and Underwriters of the issue were Emirates Bank International PJSC, HSBC Financial Services (Middle East) Limited, National Bank of Abu Dhabi, National Bank of Dubai and Standard Chartered Bank. ABN AMRO acted as the Financial Consultant to the Issuer.

Making the announcement, the Government Representative Mr. Ibrahim Belselah, said: 'The successful closing of the issue and the excellent borrowing rate obtained by the Government are a clear signal from the market about the strength of Dubai and its economy'. He added:' this exercise is a major step toward the development of the capital markets in Dubai and the UAE'.

Mr. Belselah added: 'I would like to use this opportunity to thank the Central Bank of the UAE, Emirates Securities and Commodities Authority, Government of Dubai's Departments, Dubai Financial Market, ABN AMRO, Clifford Chance, Galadari, Allen & Overy and the Joint Lead Arrangers for their significant contribution to this transaction'.

Investors will be able to trade the bonds in multiples of AED 25,000 via exchange brokers. The low multiple amount of AED 25,000 aims at making the bonds available to retail investors.