UAE - Mubasher: The Dubai government has completed the issuance of 10-year Islamic Sukuk worth $1 billion and 30-year government bonds of $1 billion, according to the Dubai media office.
The Sukuk and bonds have the lowest interest rates in Dubai's history, as the 10-year Sukuk has a profit rate of 2.763%, while the 30-year bonds have an interest rate of 3.90%.
Dubai has authorised Dubai Islamic Bank (DIB), Emirates NBD, First Abu Dhabi Bank (FAB), HSBC, and Standard Chartered Bank to manage the issuance process.
The value of the order book reached over $10 billion, which is five times more than the target value of the issuance.
The Head of Investors Affairs at the Department of Finance (DOF), Rashed Ali bin Obood, commented: "Global investors made up 84% of the total investors in the long-term bond segment (30 years)."
Obood added: "The continuous positive interaction of the Dubai government with the global investment markets in the past years has always played an important role in the success of previous bonds and Sukuk issuances, which is also reflected in this issuance by lowering the rates."