International law firms Allen & Overy and Latham & Watkins are advising Dubai on an expected sovereign Islamic bond, two sources familiar with the matter told The Brief.
Allen & Overy will be advising arranging banks on the deal while Latham & Watkins is acting on behalf of the Dubai government, one source said. Citigroup Inc., HSBC, National Bank of Abu Dhabi and Dubai Islamic Bank are mandated arrangers on the expected issuance.
Reuters reported earlier on Tuesday that the Islamic bond, or sukuk, will be made up of a five-year and a 10-year tenor, with guidance for the two tranches pegged at 5 percent and 6.5 percent respectively, according to arrangers. Reuters reported that Dubai may issue up to $1.5 billion as early as this week, citing sources.
Dubai set up a $4 billion medium-term notes programme in 2008 which it raised to $5 billion last year. It recently updated its bond prospectus. The emirate last tapped debt markets in 2011 when it issued the $500 million, 10-year bond with a five-year put option, allowing investors to redeem their investment ahead of maturity at full value.
Allen & Overy had previously advised lenders on Dubai’s $2 billion debut sovereign sukuk in 2009. Latham & Watkins has had a long-standing relationship with the Dubai government, having advised Dubai during the $25 billion debt restructuring of state-owned conglomerate Dubai World.
Shaheen Pasha is Middle East Editor at The Brief. Follow her on Twitter: @ALB_TheBrief