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Wed 2 Jun 2010 04:37 PM

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Dubai to meet fixed-income investors in Europe

Meetings are 'non-deal' according to spokeswoman at Dubai Department of Finance.

Dubai to meet fixed-income investors in Europe
MEETINGS: HSBC Holdings and Mitsubishi Financial Group were hired to help arrange the briefings, which are expected to start in Switzerland.

The Dubai Department of Finance will hold meetings with fixed-income investors in Europe as it seeks to update potential investors on the emirate’s economy.

The meetings are “non-deal,” said a spokeswoman at the Department of Finance, who declined to be identified. HSBC Holdings and Mitsubishi UFJ Financial Group were hired to help arrange the briefings, which are expected to start in Switzerland June 4, Paris June 7, Germany June 8 and London from June 9-10, said a person familiar with the plan who declined to be identified as details are private.

Dubai World, one of the emirate’s three main state-owned business groups, said on May 20 it reached an agreement with a group of creditors to restructure $23.5bn of liabilities. The Dubai government and its state-owned companies have racked up $109.3bn of debt and about $15.5bn of that is due this year, according to International Monetary Fund estimates, as the emirate pursued a drive to transform itself into a tourism, trade and financial services hub.

Dubai Electricity & Water Authority sold five-year $1bn bonds in April at 8.5 percent, becoming Dubai’s first government-owned entity to tap credit markets since the debt crisis. In February 2009, Dubai created a $20bn sovereign bond fund program to help companies hurt by the global credit crisis and emirate’s property slump.

The Dubai Department of Finance’s five-year 6.396 percent Islamic bond maturing in November 2014 rose 0.217 cents to 95.05 on the dollar and yielded 7.741 percent, according to Bloomberg bond trader composite prices. The price has gained 11 percent since reaching a year low in February.

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