DUBAI, United Arab Emirates, (AP) – Dubai’s finance department says it sold $10 billion in bonds to the United Arab Emirates Central Bank, alleviating some concern about the Gulf city-state’s finances.
The sale is part of a $20 billion long-term bond program launched Sunday.
The bonds carry a 4 percent annual interest rate and mature in five years.
The department says the sale will provide “the necessary liquidity” to compensate for global funding sources that have dried up over the past year. It adds the deal gives it sufficient funding to “meet its financial obligations and continue its development program.”
Analysts have speculated for months that the federal government in oil-rich Abu Dhabi might need to help debt-ridden Dubai.