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Dubai Holding lists largest corporate bond issued in middle east on the DIFX

PUBLISHED ON 31-Jan-2007
Dubai Holding lists largest corporate bond issued in middle east on the DIFX
Dubai Holding Commercial Operations Group (DHCOG) will tomorrow list bonds worth $2.46 billion on the Dubai International Financial Exchange (DIFX), in the largest corporate bond issued in the Middle East under a European Medium Term Notes (EMTN) programme.

His Excellency Mohammed Al Gergawi, Executive Chairman of Dubai Holding, said: “The DIFX is a gateway for both regional and international investors. Following its rapid growth, the DIFX is the ideal platform for Dubai Holding to list this important issue of bonds, the first it has ever made. As an exchange that operates to high international regulatory standards, the DIFX provides expanding  opportunities for the business and financial community.”

His Excellency Dr. Omar Bin Sulaiman, Governor of the Dubai International Financial Centre (DIFC), said: “Dubai Holding joins a list of other prominent issuers that have firmly established the DIFX as the region’s international exchange, appealing to local and regional issuers of the highest quality as well as to international companies. The DIFX has been designed to attract regional and international capital and it is a driving force in the development of the region’s economy.”

The bonds were sold in three tranches of $500 million, 750 million euros and £500 million, equivalent to a total of $2.46 billion. They are the first bonds ever issued by Dubai Holding and were issued under DHCOG’s  $5 billion EMTN programme. This programme is the largest ever undertaken in the Middle East and it also lists tomorrow on the DIFX.

Per E. Larsson, Chief Executive of the DIFX, said: “The scale of the listing and the prominence of the issuer make this a landmark in the progress of the exchange. The DIFX already has a larger listed value of Sukuk (Islamic-compliant bonds) than any other exchange in the world.

“The DIFX looks forward to further significant listings of  both conventional bonds and Sukuk and it aims to be at the forefront of developing a thriving secondary market in these securities.”

Fadel Al Ali, Chief Financial and Operating Officer of Dubai Holding, said: “There has been strong worldwide interest in our transaction, further reiterating the confidence the global financial community places in Dubai and in Dubai Holding’s role as an important driver to the economic growth of the emirate. The transaction demonstrates large international investor demand for bonds from our region, with the initiative serving as a liquid benchmark for future issuance out of Dubai and the Middle East.”

Orders for the DHCOG bonds came mainly from European investors with the rest going to Asia and the Middle East. Moody’s Investors Service has assigned A1 long-term local and foreign currency ratings to DHCOG, while Standard & Poor’s has assigned an A+ rating, and Fitch AA – stable. These are among the highest ratings for a Middle East bond issuer and DHCOG is the first on the DIFX with ratings by all three agencies.

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