DUBAI Jan 9 Investment Corporation of Dubai
(ICD), the Dubai government's main investment arm, is likely to
issue its planned U.S. dollar-denominated bond this month but
has yet to decide whether it will be a sukuk or a conventional
bond, sources said on Monday.
The bond will be benchmark-sized, which traditionally means
upwards of $500 million, and ICD has picked banks to arrange the
issue, the sources familiar with the matter told Reuters,
speaking on condition of anonymity because the information is
An ICD spokeswoman did not respond to a request for comment
The company, which holds stakes in Emirates Airline
and Emirates NBD, has selected Citi,
Emirates NBD, HSBC, JP Morgan, NBAD and Standard Chartered to
arrange the upcoming debt issuance. Dubai Islamic Bank could
also be involved should the deal be a sukuk rather than a
conventional transaction, one of the sources said.
The issue is expected to be one of a number of dollar bond
issues out of the Gulf this year as banks, companies and
governments plan debt issues to improve their liquidity and to
replenish their coffers, strained by lower oil prices.
Banks are likely to issue their bonds before companies and
governments, sources said. Lenders such as Bahrain's Gulf
International Bank, Kuwait's Warba Bank and
UAE's Dubai Islamic Bank have either already lined up
arrangers for their planned debt sales or have approached banks
to prepare their bonds.
ICD sold a maiden U.S. dollar bond in 2014, when it raised
$1 billion in debt split between a $700 million sukuk and a
$300m conventional bond.
Citi, Dubai Islamic Bank, Emirates NBD, HSBC and Standard
Chartered arranged the 2014 bond.
(Editing by Susan Fenton)