As part of its long term financing strategy, Dubai Government today launched a USD20 billion Long Term Bond Program, the first issuance of which, amounting to USD10 billion, was fully subscribed by the Central Bank of the UAE, reported the official news agency WAM.
The bond is an unsecured fixed rate paper yielding 4pc per annum and has a five year maturity.
This issuance will provide Dubai Government with the necessary liquidity to substitute the liquidity that has dried up globally in the last 12 months and accordingly meet all upcoming financial obligations.
This program will secure the necessary funding for Dubai to meet its financial obligations and continue its development program.
***SPOTLIGHT: UAE bond purchase will do little to stimulate steel demand, say traders;
“The [bond] is not really good news for the steel industry — as far as I understand it is a refinancing of existing debt,†said one flat products trader in the region. “Dubai has debt of about $70-80 billion, which is twice the country’s GDP.†“The Dubai government is just buying time for repayment of this debt,†he continued. “The bond doesn’t mean that the steel industry will suddenly see more money. There’s no talk…
http://www.metalbulletin.com/Article/2113228/Iron/SPOTLIGHT-UAE-bond-purchase-will-do-little-to-stimulate-steel-demand-say-traders.html