UAE - Mubasher: Dubai started on Wednesday marketing two-tranche bonds, marking its first sale in public debt markets since 2014, Reuters reported.
Dubai is offering about 250 basis points over mid-swaps for 10-year Sukuk and about 4.375% for 30-year conventional bonds, according to a document issued by one of the banks leading the deal.
Through the transaction, expected to close later on Wednesday, the emirate seeks to strengthen its financial system amid the coronavirus (COVID-19) pandemic and the economic downturn.
The COVID-19 economic repercussions have raised concerns over Dubai's finances, pushing the emirate to take action to avoid crises like the 2009 debt crisis.
The document showed that Dubai's budget will record a $3.2 billion deficit in 2020, and the government's direct debt reached around $34 billion at the end of June.
However, Dubai had no consolidated estimates for the outstanding total debt of government-related entities.
It is noteworthy to mention that in July, S&P rating agency announced a potential 11% decline in Dubai's economy in 2020.