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 nikhil.lohade@wsj.com
