We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Mon 18 Oct 2010 03:47 PM

Font Size

- Aa +

Dubai sought loans from banks for bond mandates-FT

Dubai issued a $1.25bn bond with a yield of 6.7% for the 5-year tranche in late Sept

Dubai sought loans from banks for bond mandates-FT
GOVERNMENT DENIAL: The Dubai government denies raising new bilateral loans from the mandated banks, FT said (Getty Images)

Dubai asked lenders pitching to manage the emirate's recent sovereign bond
issue to offer the government a $500 million loan over three years, the
Financial Times reported on Monday, citing bankers.

Dubai issued a $1.25 billion bond with a
yield of 6.7 percent for the five-year tranche in late September, which drew
about $5 billion in subscriptions.

"It was 'pay-to-play,'" a senior regional banker invited to join
the mandate told the FT.

"It wasn't a conversation. It was more
like 'this is the price to pay.' There was no reward for past support."

A spokeswoman for Dubai had no immediate
comment.

Deutsche Bank, HSBC  and Standard Chartered were mandated for the
offering but declined to comment, the FT said.

Bankers familiar with the matter said
significant sums had already been committed while others say negotiations are
continuing over the size and tenor of potential loans, according to the FT.

The government denies raising new bilateral
loans from the mandated banks, FT said. (Reuters)

Arabian Business: why we're going behind a paywall