Dubai's DIFC Investments Launches $700 Million Sukuk Issue -- Source

   By Nikhil Lohade 
 

DUBAI--DIFC Investments, the developer and operator of Dubai's main international financial free zone, on Tuesday launched a $700 million Islamic bond, or sukuk, after receiving strong demand, according to an arranging bank.

The company booked orders worth more than $3 billion for the 10-year sukuk after meeting with fixed-income investors in Asia, the Middle East and Europe, an arranging bank told its clients in an email viewed by The Wall Street Journal.

The final price of 185 basis points over mid swaps was tighter than the initial guidance of very low 200s over the same benchmark.

Dubai Islamic Bank, Emirates NBD Capital, Noor Bank and Standard Chartered are book runners for the issue.

DIFCI is owned by the Dubai International Financial Centre Authority, a Dubai government-linked entity.

Last month, Essa Kazim, the business park's governor, said the DIFC plans to issue a sukuk worth around $700 million by the end of October to refinance old debt and fund infrastructure development.

The DIFC had about $650 million left to repay of a $1 billion syndicated loan it took out in 2012, Mr. Kazim said in September, adding its only other debt was $500 million of support funding from the Dubai government that it didn't need to repay urgently.

The Dubai International Financial Centre was founded 10 years ago and serves as a point of entry into the Arab region for many international financial firms. There were 1,113 DIFC-registered companies at the end of June, up 7% from the end of last year--as the emirate's economy continues to strengthen, while also benefiting from its perceived safe haven status amid unrest in the wider region.

-Write to Nikhil Lohade at [e-mail]