The government of Dubai launches trading of first-ever inaugural 1.5 billion UAE Dirhams bond issue

His Excellency was joined by Ibrahim Belselah, Government Representative for the Bond Issue, and more than 200 dignitaries.

Earlier this week, the successful closing of the Dhs 1.5 billion bond issue - the first ever by the Government of Dubai - was announced with news that 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.

During the launch presentation, Mr Belselah said: "By launching this initiative, the Government took an important step towards the development of an efficient financial market. The existence of a bond market and its proficient functioning are important to the creation of an optimal environment for the economy to grow and become increasingly integrated in the world markets.

"This initiative will contribute over the medium term to facilitating inbound- and intra-investment and financing decisions in the Emirates. The existence of tradable instruments, such as this Bond, will also guide risk management and help financial market participants monitor, and hedge, their exposures."

He also acknowledged the support of 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.

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.

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