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Mon 14 Mar 2016 02:18 PM

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Dubai Holding unit says declines bond buyback on pricing mismatch

DHCOG says all the tendered notes demanded purchase prices that were significantly greater than the minimum purchase price

Dubai Holding unit says declines bond buyback on pricing mismatch

Dubai Holding Commercial Operations Group (DHCOG) did not buy back any of its £500 million 6 percent 2017 notes from investors as holders demanded a premium over the price it was willing to buy at, it said in a bourse filing on Monday.

The unit of Dubai Holding, the investment vehicle of the emirate's ruler, on March 3 invited holders to tender their notes for buyback through an auction process, saying it would buy up to £250 million at a minimum price of 99.00 percent.

However, in the filing on the Nasdaq Dubai exchange, DHCOG said that while bonds worth £319.55 million were tendered by the deadline of Mar. 11, almost all the tendered notes demanded purchase prices that were significantly greater than the minimum purchase price. As a result, DHCOG decided against repurchasing any of the bonds.

The bonds, due to mature on Feb. 1, 2017, were trading at a bid price of 101.050 percent at 0714 GMT, according to Thomson Reuters data.