(Bloomberg) -- Investment Corp. of Dubai, an investment arm of the Dubai government, is considering raising as much as $1 billion from the sale of international debt this year, two people familiar with the matter said.
The company has sent requests for proposals to appoint arrangers for a possible dollar-denominated offering, the people said, asking not to be identified because the matter is private. ICD may decide against a sale if market conditions aren't favorable, they said.
Governments and companies across the six-nation Gulf Cooperation Council are selling debt after Brent crude sank more than 50 percent in two years, putting a strain on the region's economies. Qatar raised $9 billion via a bond sale in May, a record for the region, and Abu Dhabi issued $5 billion in April. Saudi Arabia may offer as much as $15 billion, Oman has picked banks for a deal and Dubai and Kuwait are mulling sales.
ICD, which owns stakes in Emirates Airline and Emirates NBD PJSC, last sold dollar debt in May 2014 when it raised $1 billion from a two-part offering, according to data compiled by Bloomberg. The yield on its $300 million bonds due 2024 fell 51 basis points this year to 4.18 percent as of 3:56 p.m. in Dubai.
To contact the reporter on this story: Archana Narayanan in Dubai at anarayanan16@bloomberg.net. To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Dana El Baltaji, Matthew Kalman
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