Dubai in process to raise $1.5 billion via Islamic bond

Dubai in process to raise $1.5 billion via Islamic bondThe Dubai government is in talks with Malaysia so that it is able to raise $1.5 billion. The money is going to be via multi-currency Islamic bond, said that people involved with the discussion.

The bond is going to be the first foreign sovereign sukuk that will come up in Malaysia in the last 10 years time. The country has come up as a leading center for Islamic bond issuances in the world and currently is the market leader in that. It holds 60 per cent of the global outstanding stock.

As per the information, the bonds are going to be issued by the next year. If that happens then it will be the first attempt since October, 2009. At that time, $2 billion of sukuk was traded in accordance with the Islamic religious principles.

This is the second time in a month that the Gulf region is going to raise money via Islamic bond route.

During the first time, the issue was oversubscribed and was able to raise $1.25 billion in that. Now the money is going too renamed and will help in restructuring of the $2.5 billion debt that is on Dubai World.

A person close to the development said that CIMB, the investment bank of Malaysia is going to arrange the issue. No comments were given by CIMB.