Dubai mandates banks for potential US dollar bond

Dubai has mandated banks for a potential benchmark dollar bond issue, according to lead arrangers on Thursday, just a week after its state-owned carrier tapped markets with a $1 billion five-year bond.

Dubai, which is digging itself out of a massive debt pile after its 2009 crisis, last came to the bond market in September when it issued a dual-tranche $1.25 billion bond.

Dubai's department of finance mandated UBS, Royal Bank of Scotland and Emirates NBD for the issue which will be used for general budgetary purposes, according to leads.