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Dubai looks to offer five year put option on bond

Buoyed by returning investor sentiment and the falling cost of borrowing international capital, the government of Dubai is seeking to attract investors with a potential 10-year dollar bond with a five-year put option, Reuters has reported, citing banking sources. With an unusual structure crafted by the emirate's Department of Finance, the bond is aimed at allowing bondholders to redeem their investment before maturity at full value, the sources said. "The 10-year tenor with five-year put is a somewhat unusual structure for sovereign bond issues in this region and demonstrates that the issuer is thinking outside the box," Chavan Bhogaita, head of markets strategy department at National Bank of Abu Dhabi, said.