| Dubai’s government last month sold $750 million of 10-year Islamic bonds at a price to yield 3.875 percent, compared with 6.45 percent for similar-maturity notes in April. The cost to protect Dubai debt using five-year credit default swap prices tumbled 220 basis points to 225 last year after the emirate partly repaid and refinanced $3.75 billion of debt at state- owned companies and as the city’s tourism, retail, trade and transport industries rebounded.
The loan included both conventional and Islamic portions and was aimed at funding transport projects. There’s demand for good quality assets and the securitization of Dubai’s road-toll receipts, known as salik, is now a proven structure and should generate good demand if it’s refinanced, the banker said...............................................Full Article: Source
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