The Dubai government is set to raise as much as $1.25bn as its sovereign bond issue moved to price on Wednesday, reported The Financial Times.
It was four times subscribed as the book closed in Europe on Tuesday, bankers commented, having elicited interest of $4bn: $2bn for the five-year tranche and another $2bn on the 10-year tranche.
The lead managers, Deutsche, HSBC and Standard Chartered, have narrowed pricing to about 6.75 per cent for the five-year and 7.875 per cent for the 10-year tranche from initial soundings of 6.875 per cent and 8 per cent respectively.
The bond could total $750m for the five-year tranche and $500m for the 10-year tranche, continued FT.
The issue is part of a debt issuance programme launched in 2008.
Acting as a barometer for investor appetite, the bond comes amid renewed optimism about the emirateâ€™s fortunes.