International law firm Maples and Calder is advising the Dubai government on the planned dual-tranche sovereign Islamic bond issue, expected to be launched imminently.
In a statement to The Brief, the firm said it is advising the issuer of the expected sovereign Islamic bond, or sukuk, as to matters related to Cayman Islands law. As part of the offering, the Dubai government sukuk will be structured using a special purpose vehicle (SPV) that was incorporated as an exempted company with limited liability in the Cayman Islands. The SPV will be the issuer on record responsible for issuing the trust certificates.
The Maple and Calder team was led by the managing partner of its Dubai office Tahir Jawed and supported by associate Manuela Belmontes.
International law firms Allen & Overy and Latham & Watkins are also advisors on the deal, a prospectus of the planned issuance confirmed. Allen & Overy will be advising the arrangers on the deal, which include Citigroup Inc., HSBC, National Bank of Abu Dhabi and Dubai Islamic Bank. Latham & Watkins is advising the government.
The five- and 10-year benchmark sukuk, backed by real estate assets, is Dubai's first Islamic bond since 2009. Initial guidance was seen around 5 and 6.5 percent respectively for the two tranches.
"Proceeds will be used to cover the budget deficit and (for) refinancing of debt," a senior government official told Reuters, who declined to give his name. "Dubai International Airport assets will be used to back the sukuk." ALB
Shaheen Pashan is Middle East Regional Editor at The Brief. Follow her on Twitter: @ALB_TheBrief