Dubai’s ICD Said to Weigh Bond Sale of as Much as $1 Billionby
Emirate’s investment arm is mulling a debt offering in 2016
Sale would be company’s first dollar issuance in two years
Investment Corp. of Dubai, an investment arm of the Dubai government, is considering raising as much as $1 billion from the sale of international debt this year, two people familiar with the matter said.
The company has sent requests for proposals to appoint arrangers for a possible dollar-denominated offering, the people said, asking not to be identified because the matter is private. ICD may decide against a sale if market conditions aren’t favorable, they said.
Governments and companies across the six-nation Gulf Cooperation Council are selling debt after Brent crude sank more than 50 percent in two years, putting a strain on the region’s economies. Qatar raised $9 billion via a bond sale in May, a record for the region, and Abu Dhabi issued $5 billion in April. Saudi Arabia may offer as much as $15 billion, Oman has picked banks for a deal and Dubai and Kuwait are mulling sales.
ICD, which owns stakes in Emirates Airline and Emirates NBD PJSC, last sold dollar debt in May 2014 when it raised $1 billion from a two-part offering, according to data compiled by Bloomberg. The yield on its $300 million bonds due 2024 fell 51 basis points this year to 4.18 percent as of 3:56 p.m. in Dubai.