Dubai plans to tap the international capital markets as early as next week with its first bond issue since the debt standstill in the Gulf emirate shook financial markets last November, according The Financial Times.
The government plans to issue about $1bn (€750m) in bonds with maturities of up to seven years amid improving sentiment following an agreement between its flagship group and creditors this month, according to people familiar with the situation, said the newspaper.
The deal would represent a sharp turnround for Dubai after the announcement in November that the emirate would defer payment on debts held by Dubai World. Investor confidence may continue to rise on the belief that support will come from Abu Dhabi, the capital of the United Arab Emirates, which last year loaned Dubai $20bn to stave off fears of default.
