Dubai - Arabstoday
The total outstanding external term borrowings of the Government of Dubai stood at Dh115.4 billion as on May 20 in addition to which the government also has financial contingencies and extended guarantees, according to an investor presentation made on Friday by the emirate\'s department of finance. On Thursday, the government said it plans to test credit-market sentiment again and issue a dollar-denominated, benchmark-sized bond, amid signs that confidence in Dubai\'s economic fundamentals is slowly returning. Dubai\'s department of finance has appointed UBS AG, Royal Bank of Scotland Group PLC and Emirates NBD for a dollar-bond issue under its EMTN programme. Proceeds will be used for general budgetary purposes. A series of meetings with fixed-income investors will take place in London tomorrow and on Tuesday, with the bond expected to launch and price thereafter, subject to market conditions, according to a banker familiar with the matter. Dubai\'s nominal GDP was Dh300.8 billion in 2010 and its total direct debt/nominal GDP ratio about 38 per cent, according to the presentation, which was seen by Zawya Dow Jones on Friday. The Dubai Government has provided outstanding guarantees to the tune of Dh7.6 billion towards the financial obligations of the Dubai Electricity and Water Authority and Dh6.53 billion guarantee exposure to the DURL Consortium with respect to Dubai Metro, the presentation said. The government has also provided shortfall guarantees to the tune of $2.19 billion (Dh7.92 billion) related to the restructuring of Dubai World. From / Gulf News