Investment Corporation of Dubai, the emirate’s main state-owned holding company, may sell its first dollar bonds this month, according to a person familiar with the deal, as the city’s real-estate market and economy rebound.
ICD, as the company is called, will hold meetings with fixed-income investors starting from May 8 that will be arranged by Citigroup Inc., Dubai Islamic Bank PJSC (DIB), Emirates NBD Capital Ltd., HSBC Holdings Plc and Standard Chartered Plc (STAN), according to the person, who asked not to be identified because the information is private. A Regulation S dollar bond may follow subject to market conditions, according to the person.
Dubai, the second-biggest of seven members in the United Arab Emirates federation, has regained investor confidence since teetering on the brink of default more than four years ago, with the city’s economy growing last year at the fastest pace since 2007. Abu Dhabi, U.A.E.’s capital, in March agreed to roll over $20 billion of Dubai’s debt for five years at 1 percent, helping push the emirate’s credit risk to the lowest level since 2008.
Property prices will probably jump 40 percent in Dubai this year, according to the emirate’s Land Department.
ICD’s planned sale comes two weeks after Dubai’s government raised $750 million from 15-year bonds that pay a coupon of 5 percent. ICD owns stakes in companies including Emaar Properties PJSC, developer of the world’s tallest skyscraper, and Emirates NBD PJSC, the U.A.E.’s second-biggest bank by assets.
The SEC regulation, known as Reg S, exempts overseas offerings from registration requirements under the Securities Act of 1933.