DUBAI, Oct 19 (Reuters) - Investment Corporation of Dubai
(ICD), the Dubai government's main investment arm, is planning
an issue of U.S. dollar-denominated bonds amid expectations of
lower revenues from its assets due to the coronavirus crisis.
It has hired banks including Citi, Emirates NBD Capital,
First Abu Dhabi Bank, HSBC, JPMorgan and Standard Chartered, to
arrange investor calls ahead of the issuance, a document from
one the banks showed on Monday.
ICD, which as of the end of last year had total assets worth
around $305 billion, owns stakes in Emirates airline and Dubai's
biggest bank, Emirates NBD.
The planned fixed rate, long five-year senior unsecured
conventional bonds are part of a $2.5 billion bond issuance
programme, according to the document.
The deal would follow a $2 billion bond sale by the
government of Dubai last month, its first in public debt markets
in six years, as the emirate replenished state coffers amid the
"Although a decrease in revenues of ICD's portfolio
companies is expected, the duration, impact and severity of such
decrease or the rapid spread of the outbreak ... on the Group's
results cannot be predicted," a bond prospectus seen by Reuters
"ICD is unable to quantify in any meaningful way the likely
scale of the impacts since the duration of the outbreak is
currently unknown but such impact could be significant,
particularly in the short term," it said.
Emirates has cut thousands of jobs this year amid a cash
crunch caused by the pandemic, sources have said.
The government of Dubai provided 7.3 billion dirhams ($1.99
billion) to the airline it owns after Dubai's crown prince in
March promised equity to Emirates to see it through the crisis.
($1 = 3.6728 UAE dirham)
(Reporting by Davide Barbuscia and Yousef Saba;
Editing by Muralikumar Anantharaman and Andrew Cawthorne)