Dubai brings first puttable Middle East sovereign, sparks debate over pricing
Dubai this week became the first Middle Eastern sovereign to issue a bond with a put, but syndicate officials and traders away from the note said that the option had been underpriced. Whatever the truth of that claim, the bond only traded down by a quarter point in secondary — while other new issues from the week fell much further.
Sovereign puttable trades are not common. The most recent was a 30 year put 10 deal for Russia that was placed in 1998.
Dubais $500m 10 year put five note priced at par with a coupon of 5.91%. Leads were Emirates NBD, HSBC, National Bank of Abu Dhabi, Royal
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