Dubai government repays Dh4 billion worth of sukuk

The emirate of Dubai’s Public Debt Management Office has redeemed $750 million worth of Islamic bonds, or sukuk, issued on January 30, 2013, according to Dubai media office.

"The government has also paid back early an additional $300 million of sukuk due to mature in November 2026, the media office said," Dubai media office wrote on Twitter on Monday.

In a statement, the Public Debt Management Office (DMO) of the Government of Dubai’s Department of Finance (DOF) confirmed the redemption of $750 million (approximately Dh2.755 billion) worth of Trust Certificates (sukuk) issued on January 30, 2013, under the Trust Certificate Issuance Programme (sukuk programme).

The government also prepaid an additional $300 million (approximately Dh1.1 billion) of sukuk through an early redemption, almost four years ahead of its maturity in November 2026.

"The Dubai Government has fully redeemed the sukuk through the settlement of payable amounts, including accrued profits, to the investors. The office further stated that the sukuk played a vital role in financing infrastructure projects, primarily the expansion of the Dubai International Airport," according to the Public Debt Management Office.

Abdulrahman Saleh Al Saleh, DOF’s director-general, affirmed that the Dubai government's commitment to the timely settlement of financial obligations and the willingness to prepay such obligations before its due date reflects its strong financial position and its strong focus on achieving its risk management strategy.

Rashid Ali bin Obood Al Falasi, chief executive officer of the Public Debt Management Office, said the strong performance of public revenues in the 2022 fiscal year, resulting from the overall economic growth of the emirate, contributed to the Government's efforts to further raise the efficiency of managing the public debt portfolio, particularly by reducing financial obligations and related costs, in accordance with the Office’s Public Debt Sustainability Strategy.

"These redemptions align with the DMO's aim of deleveraging in the short term, notably lowering the Dubai government's public debt levels," Al Falasi added.

The DMO was established last year pursuant to Law No. (8) of 2022 issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The purpose of the Law was to regulate the public debt of the Dubai government.

— business@khaleejtimes.com

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