The road show, followed by a similar program for European
investors in June, would be a non-deal initiative, indicating that there may
not be any bond issue in the near future.
The strategy is aimed at “providing regular updates to both
existing and prospective fixed income investors around the world,” said the
statement from Dubai Government, which is struggling with the debt
restructuring of its top firms that were badly hit by the global economic
slowdown.
Dubai’s debt woes sparked off an unprecedented flight of
capital from the region after state-owned Dubai World announced a standstill on
$26 billion in debt in November.
HSBC and Mitsubishi UFJ Securities International will be
arranging meetings that are scheduled to take place on Aug. 26 in Hong Kong and
Aug.. 27 in Singapore, Dubai’s Department of Finance said.
The move comes as a report separately revealed on Friday
that Asia’s rapidly rising middle class, which mainly comprises the fixed
income segment of the society, would be the key to rebalance the global
economy, making it more consumption-driven rather than relying heavily on
external demand.
Asian consumers were likely to spend $32 trillion by 2030
that would be 43 percent of the total global consumption, said the multilateral
lending agency Asian Development Bank (ADB) in its annual statistical report.
Dubai, which is trying to woo investments from Asia,
launched a $6.5 billion bond program last October, made up of $4 billion euro
medium term notes and a $2.5 billion Islamic loan. It placed almost $2 billion
in five-year Islamic bonds in late October.
In April, Dubai Electricity and Water Authority raised $1
billion in an issue that offered a coupon of 8.5 percent.
On regional front, April was the busiest month in terms of
issuance frequency and value, with 17 issuances raising a total of $6.1
billion, accounting for 25.1 percent the total first half issuances value,
according to a study by Kuwait Financial Centre, or Markaz.
Government and sovereign issuances dominated the majority of
the amount raised in the first half of 2010, with around $17.2 billion or a 71
percent of the total amount raised, the study added.
According to Markaz, Kuwait raised the largest amount in the
first half of this year, with $10.8 billion, representing 44.7 percent of the
total value of 31 issuances.
However, in terms of frequency, Bahrain was the most active,
issuing 37 bonds and sukuk representing 45.1 percent of the total issuances and
raising $2 billion. Saudi Arabia raised around $4.2 billion through five
issuances, followed by Qatar with $3.3 billion through three issuances and the
UAE, with a value of around $2 billion.
Oman was the least active amongst the GCC issuers with only
one issuance by Al Omaniya Financial Services, raising a total of $4 million.
The study showed the year 2009 was a record year in terms of
issuances, with a value of around $61.4 billion for bonds and $11.3 billion for
sukuk. It was way above the 2008 issuances, involving around $14.6 billion
bonds and $8 billion sukuk.
