The Dubai government has repaid a $500m Fixed Rate Note issued on June 22, 2011 which matured on June 22, 2021.

The facility is part of the government’s Euro Medium Term Note programme.

The Government of Dubai, acting through the Department of Finance (DoF), said that all the notes were redeemed in full by making the required payment through the paying agent to the holders of the notes, along with accrued interest, according to a statement by state-run news agency WAM.

“The Government of Dubai’s ability to fulfill its financial obligations reflects its deep fiscal stability amidst the circumstances imposed by the current global crisis. The government’s solvency has allowed it to fulfill its past and current obligations and will continue to enable it to meet all future obligations on time,” said Abdulrahman Saleh Al Saleh, director general of DoF.

“We have been successful in overcoming the most challenging repercussions of the global pandemic, and have now entered a solid phase of recovery, thanks to the measures taken by the government to ensure rational prioritised spending” Al Saleh added.

In October last year, the Dubai government also repaid a 10-year $750m fixed rate note issued on October 4, 2010.

In September 2020, Dubai issued $2bn in sukuk and bonds at the lowest-ever interest rate. It included a 10-year Islamic sukuk of $1bn at a profit rate of 2.763 per cent and a 30-year government bond of $1bn at an interest of 3.9 per cent. The value of the order book for that issuance reportedly exceeded $10bn, five times more than the target value.