Government of Dubai’s $1 Billion Sukuk and $1 Billion Notes Offering

Latham & Watkins has advised the Government of Dubai, acting through the Department of Finance, on the deal.

Government of Dubai, acting through the Department of Finance, executed the issuance of US$1 billion Trust Certificates due 2030 under its US$6 billion Trust Certificate Issuance Programme (the Certificates) and US$1 billion Notes due 2050 under its US$5 billion Euro Medium Term Note Programme (the Notes). The Certificates and the Notes were each offered to investors outside the United States pursuant to Regulation S under the US Securities Act of 1933, as amended.

The dual-tranche offering, the Government’s first in the public debt markets since 2014, was heavily oversubscribed and achieved the lowest ever profit and interest rate for Government Sukuk and bonds of comparable tenor.

The Certificates, which were based on an Ijara structure and carried a profit rate of 2.763%, were issued through Dubai DOF Sukuk Limited, a special purpose vehicle incorporated in the Cayman Islands. The Notes carried a coupon of 3.900% and were directly issued by the Government.

Dubai Islamic Bank, Emirates NBD, First Abu Dhabi Bank, HSBC and Standard Chartered Bank acted as joint lead managers for the issuance of the Certificates, while Emirates NBD, First Abu Dhabi Bank, HSBC and Standard Chartered Bank acted as joint lead managers for the issuance of the Notes. The Certificates and the Notes, which were unrated, were both listed on the Dubai Financial Market.

The Latham team was led by Dubai partner Nomaan Raja (Picture) with counsel Basil Al-Jafari.

Involved fees earner: Basil Al-Jafari – Latham & Watkins; Nomaan Raja – Latham & Watkins;

Law Firms: Latham & Watkins;

Clients: Government of Dubai;

Author: Michael Patrini.